Firms’ financial and real responses to credit supply shocks: Evidence from firm-bank relationships in Germany |
| |
| Institution: | 1. Universität Hohenheim, Germany;2. CESifo, Germany;3. Department of Economics, University of Nevada, Reno, USA;4. DIW Berlin, Germany;5. IZA, Germany;6. Oxford University Centre for Business Taxation, United Kingdom;1. CREST, École Polytechnique, Université Paris-Saclay, Route de Saclay, Palaiseau 91128, France;2. University of Hohenheim, Department of Economics, Schloss Hohenheim 1 D, Stuttgart 70593, Germany;3. University of Erlangen-Nuremberg, Department of Economics, Lange Gasse 20, Nuremberg 90403, Germany;1. Stockholm University, 106 91 Stockholm, Sweden, and Research Institute of Industrial Economics, Box 55665, 112 15 Stockholm, Sweden;2. Saïd Business School, University of Oxford, Park End Street, Oxford OX1 1HP, UK;1. ALBA Graduate Business School, The American College of Greece, 6-8 Xenias Str, 11528 Athens, Greece;2. Bank of Greece, 21 E. Venizelos Ave., 10250 Athens, Greece;3. University of Piraeus, Department of Banking and Financial Management, 80 Karaoli & Dimitriou str., 18534 Piraeus, Greece;4. Surrey Business School, University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom;1. Department of Business Administration, Athens University of Economics and Business, GR-14304, Athens, Greece;2. Department of Economics, University of Crete, GR-74100, Rethymno, Greece;1. Department of Finance, Bentley University, Waltham, MA 02452, USA;2. Ally Financial, Charlotte, NC 28202, USA;3. Carroll School of Management, Boston College, Chestnut Hill, MA 02467, USA;1. Lumsa University, Rome;2. Michigan State University, Department of Economics, Marshall-Adams Hall, 486 W Circle Dr. Rm 110, East Lansing, MI 48824, USA;3. Luiss University, Rome |
| |
| Abstract: | We investigate the importance of firm-bank relationships for the international transmission of bank distress to the real economy. Using a large panel of matched financial statements of firms of all sizes and their relationship banks in Germany, we find that banks with losses from proprietary trading activities during the 2007/8 financial crisis decreased their lending, and that their firm customers responded by reducing real investment and employment. We document how different types of firms partially offset reduced credit supply by resorting to alternative financing sources. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
