The real effects of bank distress: Evidence from bank bailouts in Germany


Bersch, Johannes ; Degryse, Hans ; Kick, Thomas ; Stein, Ingrid


[img]
Preview
PDF
dp19041.pdf - Published

Download (688kB)

URL: https://madoc.bib.uni-mannheim.de/53179
URN: urn:nbn:de:bsz:180-madoc-531798
Document Type: Working paper
Year of publication: 2019
The title of a journal, publication series: ZEW Discussion Papers
Volume: 19-041
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: G01 , G21 , G24 , G33,
Keywords (English): Bank distress , bank risk channel , firm risk channel , relationship banking , firm defaults , financial crisis
Abstract: How does bank distress impact their customers’ probability of default and trade credit availability? We address this question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance sheets. We find that a distressed bank bailout, which is subject to restructuring and deleveraging conditions, leads to a bank-induced increase of firms’ probabilities of default. Moreover, bailouts tend to reduce trade credit availability and ultimately firms’ sales. We further find that the direction and magnitude of the effects depends on firm quality and the relationship orientation of banks.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Bersch, Johannes ; Degryse, Hans ; Kick, Thomas ; Stein, Ingrid (2019) The real effects of bank distress: Evidence from bank bailouts in Germany. Open Access ZEW Discussion Papers Mannheim 19-041 [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item