Sovereign stress and SMEs’ access to finance: Evidence from the ECB's SAFE survey

Ferrando, Annalisa; Popov, Alexander; Udell, Gregory F.

doi:10.1016/j.jbankfin.2017.04.012

Cited by 96 publications

(66 citation statements)

References 69 publications

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“…We opt for the DiD, given its simplicity, and utilize that some countries adopted the Basel III framework, while others did not. Therefore, our estimation framework shares common elements with Ongena et al (2013) and Ferrando et al (2017), who also apply the DiD method. Ongena, Popov, and Udell (2013) examine the consequences of domestic financial regulation on bank risk-taking abroad using data from Europe and the United States.…”

Section: Regression Frameworkmentioning

confidence: 99%

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Basel III Implementation and SME Financing: Evidence for Emerging Markets and Developing Economies

Fisera

Horváth

Melecký³

2019

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Regression Frameworkmentioning

confidence: 99%

“…As in Ongena, Popov, and Udell (2013) and Ferrando, Popov, and Udell (2017), we also address the sample selection issues. In our case, this means an assessment of whether some countries are systematically more likely to implement Basel III.…”

Section: Regression Frameworkmentioning

confidence: 99%

Basel III Implementation and SME Financing: Evidence for Emerging Markets and Developing Economies

Fisera

Horváth

Melecký³

2019

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“…The identification approach that we use in this paper is to measure supply effects directly from a firm‐level survey data set that is specifically designed for this purpose. This approach has been particularly helpful in identifying the effects of the twin crises in Europe (e.g., Popov and Udell , Presbitero, Udell, and Zazzaro , Pigini, Presbitero, and Zazzaro , Ferrando, Popov, and Udell , Beck et al. ).…”

mentioning

confidence: 99%

Do SMEs Benefit from Unconventional Monetary Policy and How? Microevidence from the Eurozone

Ferrando¹,

Popov²,

Udell³

2018

J of Money Credit Banking

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We study the impact of the announcement of the European Central Bank's (ECB's) Outright Monetary Transactions Program on small firms’ access to finance using a matched firm‐bank data set from eight Eurozone countries. We find that following the announcement, credit access improved relatively more for firms borrowing from banks with high balance sheet exposures to impaired sovereign debt, with such firms less likely to be refused a loan or to be price rationed. Loan terms also improved as manifested by lengthening of loan maturities. Unconventional monetary policy has a positive impact on firms’ investment and profitability, while its effect on firm innovation is weaker.

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“…Similarly, Cingano et al (2016) show that Italian firms that had relationships with banks heavily exposed to the interbank market experienced a larger drop in investment and employment (see also Balduzzi et al 2017, Bofondi et al 2018. Ferrando et al (2017) use firms' self-reported measures of financial constraints collected by the ECB SAFE survey to show that firms in countries severely affected by the 2012 Sovereign debt crisis faced lower access to credit. We complement these findings by providing the first cross-country study of how these two crisis episodes in Europe have impacted not only the volume, but, more importantly, the composition of corporate investment, by showing that they disproportionally discourage investments in innovation.…”

Section: Relation To Literaturementioning

confidence: 99%

Did Bank Lending Stifle Innovation in Europe During the Great Recession?

Peia

Romelli

2019

SSRN Journal

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Using the 2008-09 Global financial crisis and the 2012 Euro area sovereign debt crisis as natural experiments, we investigate the effects of contractions in credit supply on R&D spending in a large sample of European firms. Our identification strategy exploits differences in financial constraints across firms, as well as the cross-industry variation in dependence on external finance, to identify a causal effect of bank credit supply on firm investment in innovation. We show that firms that are more likely financially constrained, in industries more dependent on external finance, have a disproportionally lower growth rate of R&D spending, as well as lower R&D intensity and share of R&D investment in total investment during periods of tight credit supply. These results are robust to different proxies of financial constraints, model specifications and fixed-effects identification strategies.

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Sovereign stress and SMEs’ access to finance: Evidence from the ECB's SAFE survey

Cited by 96 publications

References 69 publications

Basel III Implementation and SME Financing: Evidence for Emerging Markets and Developing Economies

Basel III Implementation and SME Financing: Evidence for Emerging Markets and Developing Economies

Do SMEs Benefit from Unconventional Monetary Policy and How? Microevidence from the Eurozone

Did Bank Lending Stifle Innovation in Europe During the Great Recession?

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