Bank risk and firm investment: evidence from firm-level data

0570718 - NHU-C 2024 RIV US eng J - Článek v odborném periodiku
Shamshur, Anastasiya - Weill, L.
Bank risk and firm investment: evidence from firm-level data.
Journal of Financial Services Research. Roč. 63, č. 1 (2023), s. 1-34. ISSN 0920-8550. E-ISSN 1573-0735
Grant CEP: GA ČR GA19-20771S
Institucionální podpora: Cooperatio-COOP
Klíčová slova: bank risk * firm investment
Obor OECD: Applied Economics, Econometrics
Impakt faktor: 1.4, rok: 2022
Způsob publikování: Omezený přístup
https://doi.org/10.1007/s10693-022-00379-y

Is higher bank risk-taking associated with more firm investment? Combining firm- and bank-level data, we examine the relation between bank risk and firm investment in a large sample of firms from nine European countries. We find that bank risk is positively associated with firm investment. Our finding accords with the modern theory of financial intermediation: risk taking by banks enhances firm investment as banks become more willing to perform their key function in the economy. Additionally, we also find that this positive relation is stronger for financially-constrained firms and when banks are more efficient.
Trvalý link: https://hdl.handle.net/11104/0342056