Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82300
Authors: 
Abildgren, Kim
Buchholst, Birgitte Vølund
Staghøj, Jonas
Year of Publication: 
2011
Series/Report no.: 
Danmarks Nationalbank Working Papers 73
Abstract: 
Utilising a unique data set with annual accounts from around 37,000 Danish non-financial firms spanning one and a half decade or so, we offer microeconometric evidence on bankfirm relationships and the performance of non-financial firms during the financial crisis 2008-09. Two major conclusions are drawn from the analysis. First, the probability of default during the financial crisis 2008-09 was significantly higher for firms with a weak bank than for comparable firms with a sound bank. Second, non-defaulting firms with a weak bank did not have a lower return on assets during the financial crisis 2008-09 than comparable firms with a sound bank. Taken together, these results may indicate the presence of heterogeneous effects of having a weak bank with significant negative effects on the economic performance for some firms but insignificant effects for the broad mass of firms.
Subjects: 
Financial crisis
Bank-firm relationships
Probability of default
Firm survival
JEL: 
E44
G21
G33
Document Type: 
Working Paper

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