Do we want these two to tango? : on zombie firms and stressed banks in Europe / Manuela Storz, Michael Koetter, Ralph Setzer, Andreas Westphal ; IWH, Halle Institute for Economic Research
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Discovery
887436528
URN
urn:nbn:de:gbv:3:2-72072
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), May 2017
Umfang
1 Online-Ressource (III, 50 Seiten, 0,9 MB) : Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Inhaltliche Zusammenfassung
We show that the speed and type of corporate deleveraging depends on the interaction between corporate and financial sector health. Based on granular bank-firm data pertaining to small and medium-sized enterprises (SME) from five stressed and two non-stressed euro area economies, we show that “zombie” firms generally continued to lever up during the 2010–2014 period. Whereas relationships with stressed banks reduce SME leverage on average, we also show that zombie firms that are tied to weak banks in euro area periphery countries increase their indebtedness even further. Sustainable economic recovery therefore requires both: deleveraging of banks and firms.
Schriftenreihe
IWH-Diskussionspapiere ; 2017, no. 13 ppn:837399270