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The influence of supply side factors on firm's borrowing decisions: European evidence

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  • Krivogorsky, Victoria
  • Joh, Gun-Ho
  • DeBoskey, D.G.

Abstract

We investigate the influence of macroeconomic, and country-specific—supply side factors—on firms' borrowing decision while controlling for firm-specific factors due to the European financial crisis. We demonstrate that the crisis significantly shifted the supply side factors at the cost of firm-level factors in the post-2008 period. Our results are robust to the “tunnel test” and other sensitivity tests.

Suggested Citation

  • Krivogorsky, Victoria & Joh, Gun-Ho & DeBoskey, D.G., 2018. "The influence of supply side factors on firm's borrowing decisions: European evidence," Global Finance Journal, Elsevier, vol. 35(C), pages 202-222.
    • Handle: RePEc:eee:glofin:v:35:y:2018:i:c:p:202-222
    DOI: 10.1016/j.gfj.2017.10.008
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    More about this item

    Keywords

    Macroeconomic; Institutional; Bank debt; Firm-specific factors;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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