Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Does bank failure affect client firms?

April 26, 2017affect Bank client failure firms

0

Posted

Does bank failure affect client firms?

1 Answer

0

Posted

Karin Jõeveer CERGE-EI Working Papers from The Center for Economic Research and Graduate Education – Economic Institute, Prague Abstract: I explore the effect of a bank’s failure on its client firms using the 1998 bankruptcy of a middle-sized Estonian bank.I compare the performance of firms receiving credit from the bankrupt bank to that of a randomly selected set of firms between 1996 and 2000.I find the client firms to be less likely to survive until the end of the sample frame even after controlling for their performance before the bank bankruptcy. Keywords: Bank failure; Client firm performance; Firm bankruptcy (search for similar items in EconPapers) JEL-codes: G14 G21 G3 (search for similar items in EconPapers) Date: 2004-05 Track citations by RSS feed Downloads: (external link) http://iweb.cerge-ei.cz/pdf/wp/Wp224.pdf (application/pdf) Related works: This item may be available elsewhere in EconPapers: Search for items with the same title.