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:
Read more news
Researchers turn energy loss into a way of creating lossless photonics-based devices
Turning energy loss from a fatal flaw into a dial for fine-tuning new states of matter into existence could yield better laser, quantum and optical technology.
Herd immunity may not work how we think
A new study from researchers at Aalto University suggests that our picture of herd immunity may be incomplete — and that understanding how people are connected could be just as important as knowing how many are immune.
Aalto computer scientists in ICML 2025
Department of Computer Science papers accepted to International Conference on Machine Learning (ICML)