EconPapers    
Economics at your fingertips  
 

Debt specialization and performance of European firms

Caterina Giannetti ()

Journal of Empirical Finance, 2019, vol. 53, issue C, 257-271

Abstract: Relying on a cross-country comparable sample of European manufacturing firms, this paper investigates the relationship between the level of debt specialization (i.e. composition of the various types of debt) and firm turnover reduction in a time of crisis. The analysis is conducted applying the generalized propensity score matching methodology for continuous variables recently developed by Hirano and Imbens (2004) and Imai and Van Dyk (2004). This quasi-experimental setting allows estimating the (average) firm turnover reduction at each level of debt concentration (i.e. the dose–response function). Consistent with the theoretical analysis of De Fiore and Uhlig (2015) on the flexibility of the financial system, results from the empirical analysis suggest that firms having a diversified debt structure are less likely to experience a severe turnover reduction.

Keywords: Debt concentration; European firm financing; Generalized propensity score (search for similar items in EconPapers)
JEL-codes: C24 G31 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927539819300635
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:53:y:2019:i:c:p:257-271

DOI: 10.1016/j.jempfin.2019.07.008

Access Statistics for this article

Journal of Empirical Finance is currently edited by R. T. Baillie, F. C. Palm, Th. J. Vermaelen and C. C. P. Wolff

More articles in Journal of Empirical Finance from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-03-30
Handle: RePEc:eee:empfin:v:53:y:2019:i:c:p:257-271