On the real effects of financial pressure: Evidence from euro area firm-level employment during the recent financial crisis

Filipa Fernandes, Alexandros Kontonikas () and Serafeim Tsoukas

Working Papers from Business School - Economics, University of Glasgow

Abstract: Using a large panel of unquoted euro-area firms over the period 2003-11, this paper examines the impact of financial pressure on firms’ employment. The analysis finds evidence that financial pressure negatively affects firms’ employment decisions. This effect is stronger during the 2007-2009 financial crisis, especially for firms in the periph-ery area compared to their counterparts in the core European economies. We also find that impact of financial pressure on employment is more potent for firms classified as financially constrained and operating in periphery economies during the financial crisis.

Keywords: Financial pressure; Firm employment; Euro area; Financial crisis (search for similar items in EconPapers)
JEL-codes: D22 E44 G01 J23 (search for similar items in EconPapers)
Date: 2014-08
New Economics Papers: this item is included in nep-eec, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: On the real effects of financial pressure: Evidence from euro area firm-level employment during the recent financial crisis (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2014_09

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