The impact of credit supply on firm performance : micro-evidence from Slovenia

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Contibutor(s)

Volk, Matjaž (author)

Source

knjige

Language

english

Year

2023

Format

1 spletni vir (1 datoteka PDF (12 str.))

Publisher

Banka Slovenije

Provider

Narodna in univerzitetna knjižnica
(Obvezni izvod spletne publikacije)

Notes

In this paper I estimate the impact of credit supply on real economic outcomes measured with firm investment, sales and employment. Using detailed credit regis-ter data I identify the credit supply shocks as a series of bank-time fixed effects while controlling for loan demand factors with firm-time fixed effects. I find positive impact of credit supply on investment, sales and number of employees for a sample of Slovenian firms in the period 2000-2020. Further, credit supply shocks have a higher impact on the performance of smaller firms as these are usually more bank-dependent and thus the cut of bank lending affects them more. I also find that credit supply has a larger impact in crisis times, like during the 2009-2013 economic-banking crisis and in 2020 when the Covid-19 pandemic erupted.

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