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The real effects of banks nationalization–evidence from the UK

Spatareanu, Mariana, Manole, Vlad and Kabiri, Ali (2022) The real effects of banks nationalization–evidence from the UK. Applied Economics Letters, 29 (7). 579 - 583. ISSN 1350-4851

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Identification Number: 10.1080/13504851.2021.1876206

Abstract

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.

Item Type: Article
Official URL: https://www.tandfonline.com/journals/rael20
Additional Information: © 2021 Informa UK Limited, trading as Taylor & Francis Group.
Divisions: Financial Markets Group
Subjects: H Social Sciences > HG Finance
H Social Sciences > HC Economic History and Conditions
J Political Science > JN Political institutions (Europe) > JN101 Great Britain
JEL classification: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General
Date Deposited: 25 Mar 2022 14:27
Last Modified: 06 Apr 2022 11:18
URI: http://eprints.lse.ac.uk/id/eprint/114478

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