The Real Effects of Banks Nationalization – Evidence from the UK

Mariana Spatareanu (), Vlad Manole () and Ali Kabiri ()

Working Papers Rutgers University, Newark from Department of Economics, Rutgers University, Newark

Abstract: How did the nationalization of UK operating banks as a result of the 2008 banking crisis impact their client firms’ performance? We use unique firm-bank data and a propensity score matching technique and find that firms that borrowed from nationalized banks show a slight decrease in the growth of investment and innovation relative to firms that borrowed from nonnationalized banks. Interestingly, we find that firms that borrowed from nationalized banks slightly increase employment, short-term debt and cash holdings. Overall, these firms were able to maintain performance as a result of the policy intervention.

Keywords: firm performance; bank nationalization; financial crisis (search for similar items in EconPapers)
JEL-codes: G21 G34 O16 O30 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2020-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sasn.rutgers.edu/sites/default/files/sites ... SpatareanuManole.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:run:wpaper:2020-002

Access Statistics for this paper

More papers in Working Papers Rutgers University, Newark from Department of Economics, Rutgers University, Newark Contact information at EDIRC.
Bibliographic data for series maintained by Maria Rosales-Rueda ( this e-mail address is bad, please contact ).