Corporate Resilience to Banking Crises: The Roles of Trust and Trade Credit
2018 ◽
Vol 53
(4)
◽
pp. 1441-1477
◽
Keyword(s):
Are firms more resilient to systemic banking crises in economies with higher levels of social trust? Using firm-level data in 34 countries from 1990 through 2011, we find that liquidity-dependent firms in high-trust countries obtain more trade credit and suffer smaller drops in profits and employment during banking crises than similar firms in low-trust economies. The results are consistent with the view that when banking crises block the normal bank-lending channel, greater social trust facilitates access to informal finance, cushioning the effects of these crises on corporate profits and employment.
2003 ◽
pp. 309-322
◽
2002 ◽
Vol 34
(1)
◽
pp. 226-253
◽
2014 ◽
Vol 7
(2)
◽
pp. 161-169
◽
Keyword(s):
2015 ◽
Vol 42
(6)
◽
pp. 1159-1174
◽