Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5088118 | Journal of Banking & Finance | 2017 | 60 Pages |
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Andra BucÄ, Philip Vermeulen,