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)

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: Tsoukas, Professor Serafeim and Da Silva Fernandes, Miss Filipa and Kontonikas, Professor Alexandros
• 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