{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,12]],"date-time":"2026-07-12T03:09:52Z","timestamp":1783825792199,"version":"3.55.0"},"reference-count":48,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"5","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2021,5]]},"abstract":"<jats:p>We assess the impact of geographic diversification on a bank\u2019s costs of interest-bearing liabilities. We employ a new identification strategy and discover that geographic expansion across U.S. states lowered funding costs. Consistent with expansion facilitating risk diversification, we find that (1) funding costs fall more when banks expand into states whose economies are less correlated with the banks\u2019 state and (2) geographic diversification reduces the costs of uninsured, but not insured, deposits. Consistent with expansion intensifying agency frictions, which puts upward pressures on funding costs, we discover that geographic diversification reduces the costs of interest-bearing liabilities more in better-monitored and better-run banks.<\/jats:p><jats:p>This paper was accepted by Tomasz Piskorski, finance.<\/jats:p>","DOI":"10.1287\/mnsc.2020.3582","type":"journal-article","created":{"date-parts":[[2020,7,16]],"date-time":"2020-07-16T14:30:03Z","timestamp":1594909803000},"page":"2657-2678","source":"Crossref","is-referenced-by-count":82,"title":["Geographic Diversification and Banks\u2019 Funding Costs"],"prefix":"10.1287","volume":"67","author":[{"ORCID":"https:\/\/2.zoppoz.workers.dev:443\/https\/orcid.org\/0000-0002-7459-9541","authenticated-orcid":false,"given":"Ross","family":"Levine","sequence":"first","affiliation":[{"name":"Haas School of Business, University of California, Berkeley, Berkeley, California 94720;"},{"name":"National Bureau of Economic Research, Cambridge, Massachusetts 02138;"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/2.zoppoz.workers.dev:443\/https\/orcid.org\/0000-0003-4205-8633","authenticated-orcid":false,"given":"Chen","family":"Lin","sequence":"additional","affiliation":[{"name":"Faculty of Business and Economics, University of Hong Kong, Pokfulam, Hong Kong;"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Wensi","family":"Xie","sequence":"additional","affiliation":[{"name":"Department of Finance, CUHK Business School, Chinese University of Hong Kong, Shatin, Hong Kong"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1086\/500679"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12182"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhq001"},{"key":"B6","unstructured":"Berger AN (1991) Market discipline in banking.Proc. Conf. Bank Structure Competition(Federal Reserve Bank of Chicago, Chicago), 419\u2013437."},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1023\/A:1011159405433"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhx038"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2016.2422"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2004.06.003"},{"key":"B13","volume-title":"The Oxford Handbook of Banking","author":"Bliss R","year":"2015","edition":"2"},{"key":"B14","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2005.00763.x"},{"key":"B15","doi-asserted-by":"publisher","DOI":"10.1016\/0022-0531(86)90115-8"},{"key":"B17","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2006.01010.x"},{"key":"B18","doi-asserted-by":"publisher","DOI":"10.2307\/2109689"},{"key":"B19","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2004.09.004"},{"key":"B22","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2017.04.011"},{"key":"B23","doi-asserted-by":"publisher","DOI":"10.1016\/j.jmoneco.2003.04.001"},{"key":"B24","doi-asserted-by":"publisher","DOI":"10.2307\/2953695"},{"key":"B26","doi-asserted-by":"publisher","DOI":"10.1111\/j.1538-4616.2008.00154.x"},{"key":"B28","doi-asserted-by":"publisher","DOI":"10.1086\/261155"},{"key":"B30","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12057"},{"key":"B31","first-page":"87","volume-title":"Market Discipline Across Countries and Industries","author":"Flannery M","year":"2004"},{"key":"B33","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhm060"},{"key":"B34","doi-asserted-by":"publisher","DOI":"10.1016\/S0304-405X(00)00058-1"},{"key":"B35","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hht021"},{"key":"B36","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2016.01.020"},{"key":"B38","doi-asserted-by":"publisher","DOI":"10.1162\/qjec.2008.123.2.441"},{"key":"B40","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12691"},{"key":"B41","doi-asserted-by":"publisher","DOI":"10.1016\/S0378-4266(98)00009-0"},{"key":"B42","doi-asserted-by":"publisher","DOI":"10.1016\/S0304-405X(97)81511-5"},{"key":"B44","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfi.2013.06.004"},{"key":"B46","doi-asserted-by":"publisher","DOI":"10.1086\/261459"},{"issue":"2","key":"B49","first-page":"323","volume":"76","author":"Jensen MC","year":"1986","journal-title":"Amer. Econom. Rev."},{"key":"B50","doi-asserted-by":"publisher","DOI":"10.1016\/0304-405X(76)90026-X"},{"key":"B51","first-page":"73","volume":"65","author":"Johnson C","year":"2008","journal-title":"Washington Lee Law Rev."},{"key":"B52","doi-asserted-by":"publisher","DOI":"10.1111\/1540-6261.00415"},{"key":"B53","doi-asserted-by":"publisher","DOI":"10.1162\/003355399556223"},{"key":"B54","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2005.06.001"},{"key":"B55","author":"Lin L","year":"2019","journal-title":"Rev. Financial Stud."},{"key":"B59","doi-asserted-by":"publisher","DOI":"10.1086\/296532"},{"key":"B60","doi-asserted-by":"publisher","DOI":"10.1016\/0022-1996(92)90049-P"},{"key":"B61","doi-asserted-by":"crossref","first-page":"269","DOI":"10.1093\/oso\/9780199256938.003.0012","volume-title":"Intangible Assets","author":"Morck R","year":"2003"},{"key":"B62","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1990.tb05079.x"},{"key":"B63","doi-asserted-by":"publisher","DOI":"10.1257\/app.20170543"},{"key":"B65","doi-asserted-by":"publisher","DOI":"10.1111\/1540-6261.00505"},{"key":"B66","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2010.01555.x"},{"key":"B68","doi-asserted-by":"publisher","DOI":"10.1086\/261385"},{"key":"B69","volume-title":"Shaping the World Economy","author":"Tinbergen J","year":"1962"},{"key":"B70","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhu006"}],"container-title":["Management Science"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/2.zoppoz.workers.dev:443\/https\/pubsonline.informs.org\/doi\/pdf\/10.1287\/mnsc.2020.3582","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2024,8,10]],"date-time":"2024-08-10T05:07:11Z","timestamp":1723266431000},"score":1,"resource":{"primary":{"URL":"https:\/\/2.zoppoz.workers.dev:443\/https\/pubsonline.informs.org\/doi\/10.1287\/mnsc.2020.3582"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2021,5]]},"references-count":48,"journal-issue":{"issue":"5","published-print":{"date-parts":[[2021,5]]}},"alternative-id":["10.1287\/mnsc.2020.3582"],"URL":"https:\/\/2.zoppoz.workers.dev:443\/https\/doi.org\/10.1287\/mnsc.2020.3582","relation":{},"ISSN":["0025-1909","1526-5501"],"issn-type":[{"value":"0025-1909","type":"print"},{"value":"1526-5501","type":"electronic"}],"subject":[],"published":{"date-parts":[[2021,5]]}}}