From the financial crisis to the real economy: Using firm-level data to identify transmission channels

► We study how the 2007-09 crisis affected firms' profits, sales and investment. ► We isolate effects from changes in business cycle, international trade, and financing conditions. ► We further examine how various linkages propagated shocks across borders. ► The crisis had a bigger negative impact on firms with greater sensitivity to business cycle and trade. ► Trade openness propagated shocks, while financial openness made limited difference.