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On the Real Effect of Financial Pressure: Evidence From Firm-Level Employment During the Euro-Area Crisis

Fernandes, Filipa Da Silva and Kontonikas, Alexandros and Tsoukas, Serafeim (2018) 'On the Real Effect of Financial Pressure: Evidence From Firm-Level Employment During the Euro-Area Crisis.' Oxford Bulletin of Economics and Statistics. ISSN 0305-9049

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Abstract

Using a large panel of mainly unquoted euro‐area firms over the period 2003–2011, 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 (2010–2011), 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: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Elements
Date Deposited: 14 Dec 2018 12:17
Last Modified: 07 Feb 2019 14:15
URI: http://repository.essex.ac.uk/id/eprint/23622

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