The real effects of banks nationalization - evidence from the UK

How did the nationalization of UK operating banks as a result of the 2008 banking crisis impact their client firms' performance? We use unique firm-bank data and a propensity score matching technique and find that firms that borrowed from nationalized banks show a slight decrease in the growth...

Full description

Saved in:
Bibliographic Details
Published in:Applied economics letters 2022-04, Vol.29 (7), p.579-583
Main Authors: Spatareanu, Mariana, Manole, Vlad, Kabiri, Ali
Format: Article
Language:English
Subjects:
bank nationalization
Banking
Companies
Economic analysis
Economic theory
Economics
Employment
financial crisis
Firm performance
Innovations
Nationalization
Propensity
Short term debt
United Kingdom
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:How did the nationalization of UK operating banks as a result of the 2008 banking crisis impact their client firms' performance? We use unique firm-bank data and a propensity score matching technique and find that firms that borrowed from nationalized banks show a slight decrease in the growth of investment and innovation relative to firms that borrowed from non-nationalized banks. Interestingly, we find that firms that borrowed from nationalized banks slightly increase employment, short-term debt and cash holdings. Overall, these firms were able to maintain performance as a result of policy intervention.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2021.1876206