Does bank failure affect client firms? Micro evidence from Estonia

Karin Jõeveer

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: I explore the effect of a bank's failure on its client firms using the 1998 bankruptcy of a middle-sized Estonian bank.I compare the performance of firms receiving credit from the bankrupt bank to that of a randomly selected set of firms between 1996 and 2000.I find the client firms to be less likely to survive until the end of the sample frame even after controlling for their performance before the bank bankruptcy.

Keywords: Bank failure; Client firm performance; Firm bankruptcy (search for similar items in EconPapers)
JEL-codes: G14 G21 G3 (search for similar items in EconPapers)
Date: 2004-05
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp224

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