The Real effects of Banks' Nationalisation - Evidence from the UK

Spatareanu, Mariana and Manole, Vlad and Kabiri, Ali (2020) The Real effects of Banks' Nationalisation - Evidence from the UK. Applied Economics Letters. ISSN 1350-4851 (Print), 1466-4291 (Online) (In Press)

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Official URL: https://www.tandfonline.com/doi/full/10.1080/13504...

Abstract

How did the nationalization of UK operating banks as a result of the 2008 banking crisis impact their client firms’ performance? We use unique firm-bank data and a propensity score matching technique and find that firms that borrowed from nationalized banks show a slight decrease in the growth of investment and innovation relative to firms that borrowed from non-nationalized banks. Interestingly, we find that firms that borrowed from nationalized banks slightly increase employment, short-term debt and cash holdings. Overall, these firms were able to maintain performance as a result of the policy intervention.

Item Type: Article
Additional Information: Date of Acceptance 20th December 2020
Uncontrolled Keywords: firm performance, bank nationalization, financial crisis
Subjects: H Social Sciences > HB Economic Theory
Divisions: School of Humanities > Economics and International Studies
Depositing User: Ali Kabiri
Date Deposited: 26 Jan 2021 15:19
Last Modified: 26 Jan 2021 15:19
URI: http://bear.buckingham.ac.uk/id/eprint/497

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