Corporate investment and bank-dependent borrowers during the recent financial crisis

Andra Bucă and Philip Vermeulen

Journal of Banking & Finance, 2017, vol. 78, issue C, 164-180

Abstract: We use the recent financial crisis period to analyse the effect of bank credit tightening on firm investment. We derive a new set of credit tightening indexes from the ECB Bank Lending Survey. Combining these with annual balance sheet data from Germany, France, Italy, Spain, Belgium and Portugal, we exploit the heterogeneity in the dependence on bank finance of different industries to identify real effects of credit tightening. We show that in response to tightening, investment falls substantially more in bank-dependent industries.

Keywords: Corporate investment; Financial crisis; Credit crunch (search for similar items in EconPapers)
JEL-codes: E22 E44 G01 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426617300353
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Corporate investment and bank-dependent borrowers during the recent financial crisis (2015)
Working Paper: Corporate investment and bank-dependent borrowers during the recent financial crisis (2012)
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:jbfina:v:78:y:2017:i:c:p:164-180

DOI: 10.1016/j.jbankfin.2017.02.004

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().