On the real effect of financial pressure: evidence from firm-level employment during the euro-area crisis

Da Silva Fernandes, F., Kontonikas, A. and Tsoukas, S. (2019) On the real effect of financial pressure: evidence from firm-level employment during the euro-area crisis. Oxford Bulletin of Economics and Statistics, 81(3), pp. 617-646. (doi:10.1111/obes.12278)

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Abstract

Using a large panel of mainly unquoted euro-area firms over the period 2003-11, this paper examines the impact of financial pressure on firms' employment. The analysis finds evidence that financial pressure negatively affects firms' employment decisions. This effect is stronger during the euro area-crisis (2010-11), especially for firms in the periphery compared to their counterparts in non-periphery European economies. When we introduce firm-level heterogeneity, we show that financial pressure appears to be both statistically and quantitatively more important for bank-dependent, small and privately held firms operating in periphery economies during the crisis.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Da Silva Fernandes, Miss Filipa Alexandr and Kontonikas, Professor Alexandros and Tsoukas, Professor Serafeim
Authors: Da Silva Fernandes, F., Kontonikas, A., and Tsoukas, S.
Subjects:H Social Sciences > HG Finance
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
College of Social Sciences > Adam Smith Business School > Management
Journal Name:Oxford Bulletin of Economics and Statistics
Publisher:Wiley
ISSN:0305-9049
ISSN (Online):1468-0084
Published Online:23 November 2018
Copyright Holders:Copyright © 2018 The Department of Economics, University of Oxford and John Wiley & Sons Ltd
First Published:First published in Oxford Bulletin of Economics and Statistics 81(3):617-646
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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