Karolin Kirschenmann's paper accepted in the Review of Finance
Article "Funding vs. real economy shock: The impact of the 2007-2009 crisis on small firms' credit availability" by Gunhild Berg (World Bank) and Karolin Kirschenmann has been accepted for publication in the Review of Finance.
Abstract:
We analyze how banks adjust their lending to small firms after distinct shocks from the cross-border transmission of the 2007-2009 crisis by using unique loan application and contract data from AccessBank Azerbaijan. These data allow us to disentangle the effects of a funding shock from the effects of a real shock. Contrary to conventional assumptions, we find that the funding shock works through reduced prospecting — as opposed to tightened lending standards — and leads to fewer loan applications among new applicants in particular, which improves the borrower pool. The real economy shock instead works through loan approval and affects SME rather than micro borrowers.
Information:
Paper can be downloaded from SSRN:
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Hämeenlinna Art Museum’s exhibition brings artworks to life through film
Hämeenlinna Art Museum will open a new exhibition Kehyskertomuksia: 24 fps / Reframing Cinema, produced in collaboration with the Aalto University Department of Film ELO.
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