Bank supply shocks and the substitution between bank and nonbank debt

Fernández, Ana Isabel; González, Francisco; Suárez, Nuria

doi:10.1016/j.jcorpfin.2017.10.010

Cited by 26 publications

(17 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In view of the above, H3a; but not H3b. These results differ from those obtained by Fernández et al (2018). Contrary to expectations, its study points to a reduction of non-bank debt, after the crisis, when a country presents a better level of regulatory environment.…”

Section: Analysis Of Resultscontrasting

confidence: 94%

“…Like the results of Fernández et al (2018), this study confirms how non-bank sources arose to replace previous bank debt. Tables 1, 2 and 4 indicate the replacement occurring not only for companies in general, but also for those with greater initial banking dependence before the crisis, confirming H1.…”

Section: Resultssupporting

confidence: 85%

“…The results of Table 4 confirm H1. This result is also verified in the study by Fernández et al (2018).…”

Section: Analysis Of Resultssupporting

confidence: 83%

“…For Kahle and Stulz (2013), the increase in uncertainty and the decrease in the demand for products, followed by the financial crisis, led to a decrease in investment and demand from companies for credit to already struggling banks. Fernández et al (2018) point out that in a financial crisis, the decrease in the supply of credit causes the search for alternative sources of resources such as non-banks. In view of the above, the following hypothesis emerges: H1: In a financial crisis, there is replacement of bank by non-bank debt.…”

Section: Literature Reviewmentioning

confidence: 99%

“…2008 is the year of reference for the beginning of the crisis in countries other than the United States. In line with the studies of González (2015) and Fernández et al (2018), the sample analyzes the first five years before -2003 to 2007 -and after -2008 to 2012 -the crisis, in order to capture its lagged impact on corporate leverage. Additionally, a robustness test is performed for the periods 2004-2007 (pre) and 2008-2011 (post), 2005-2008 (pre) and 2009-2012 (post), in order to capture possible non-crisis effects on the corporate debt structure.…”

Section: Data Sample and Variablesmentioning

confidence: 99%

See 4 more Smart Citations

Financial Crisis Effect on Latin American Companies’ Debts

Michele¹,

Fishlow²

2020

ERSJ

View full text Add to dashboard Cite

Purpose: This study aims to verify changes in the debt structure of companies in the main Latin American countries. Approach/Methodology/Design: A difference-indifferences test is applied in a sample of 520 publicly-traded and closed companies, whose data are collected in the previous (2003-2007) and subsequent (2008-2012) periods of the crisis. Findings: The results include the replacement of bank debts by private and public non-bank debts, reduction of maturity of debts and relevance of better level of governance or regulatory environment of countries in guaranteeing the rights of creditors in this process. Practical Implications: These results are in line with the countercyclical fiscal policy adopted by these countries, guaranteeing them greater credibility in international markets. Social Implications: This study also suggest questions for future research. Each Latin American country faces many problems that are motivated by diverse events-political, for example-that impact the economy. That task involves the broadening of this methodology to incorporate internal shocks as well as global crisis. Originality/Value: One of the principal contributions of this study is the finding that companies in the main Latin American countries replace their banking credit by utilizing non-banks, just as done by the developed countries. Understanding better this effect of the global financial crisis may lead to helpful permanent macroeconomic and microeconomic measures.

show abstract

Section: Analysis Of Resultscontrasting

confidence: 94%

Section: Resultssupporting

confidence: 85%

“…The results of Table 4 confirm H1. This result is also verified in the study by Fernández et al (2018).…”

Section: Analysis Of Resultssupporting

confidence: 83%

Section: Literature Reviewmentioning

confidence: 99%

Section: Data Sample and Variablesmentioning

confidence: 99%