PhD Lunch Seminars Amsterdam

Paul Pelz (VU Amsterdam)
Tuesday, 20 June 2017

We use data from the Austrian Credit Register as well as firm and bank balance sheet data to analyze the effects of the 2008-09 financial crisis on access to credit and performance indicators of Austrian firms in 2007-2009. Controlling for credit demand, we find that clients of banks that had more U.S. assets on their balance sheet or relied more on interbank financing before the crisis received less bank credit and invested less during the crisis, but did not cut employment by more. In addition, we obtain evidence that firms with only one bank relationship before the crisis suffered a larger decline in credit during the crisis than firms with multiple banks, controlling for credit demand.