... Proposition 2, the probability that the Austrian bank makes an offer is equal to one in the region closest to the border. The further away the firm is, the lower is the probability that the Austrian ... relationship between distance and the quality of the signal). Since the German bank uses hard information, the distance between bank and firm no longer 12 matters for the probability that the ... correlation for the assessment of the current state of business and the previous expectations. Therefore, we only included the current state of business, which performed also best in the regression...