External financial dependence and firms' crisis performance across Europe

Peter Eppinger and Katja Neugebauer

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

Abstract: Economic research has often relied on a measure of external financial dependence that is constructed using U.S. data and applied to other countries under the assumption of a stable industry ranking across countries. We exploit unique survey data from seven European countries to show that correlations of financial dependence across countries are weak, questioning this assumption. We then use the novel survey-based measure to show that the global financial crisis had a disproportionately negative impact on the real performance of financially dependent firms.

Keywords: external financial dependence; financial constraints; financial crisis; firm performance (search for similar items in EconPapers)
JEL-codes: F10 G10 G30 L25 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2017-03-02
New Economics Papers: this item is included in nep-bec
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Downloads: (external link)
http://eprints.lse.ac.uk/70763/ Open access version. (application/pdf)

Related works:
Journal Article: External financial dependence and firms’ crisis performance across Europe (2022)
Working Paper: External financial dependence and firms' crisis performance across Europe (2022)
Working Paper: External financial dependence and firms' crisis performance across Europe (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:70763

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