Can firms grow without credit?: evidence from the Euro Area, 2005-2011: a quantile panel analysis

Sophia Dimelis (), Ioannis Giotopoulos and Helen Louri

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper explores the effects of bank credit on firm growth before and after the recent financial crisis, taking into account different structural characteristics of banking sectors and domestic economies. Panel quantile analysis is used on a sample of 2075 euro area firms in 2005-2011. The post-2008 credit crunch is found to seriously affect only small, slow-growth firms and especially those operating in concentrated and domestic-dominated banking systems, and in riskier and less financially developed economies. Large, high-growth firms seem to be able to find alternative financial sources and, thus, may act as carriers and facilitators of a credit-less recovery.

Keywords: credit crunch; firm growth; credit-less recovery; financial crisis; panel quantile regressions (search for similar items in EconPapers)
JEL-codes: E51 L1 L25 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2015-02
New Economics Papers: this item is included in nep-ban, nep-mac and nep-sbm
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Citations: View citations in EconPapers (12)

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http://eprints.lse.ac.uk/61157/ Open access version. (application/pdf)

Related works:
Working Paper: Can Firms Grow Without Credit? Evidence from the Euro Area, 2005-2011: A Quantile Panel Analysis (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:61157

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