Credit Supply and (In)organic Growth
UNIVERSITY OF TECHNOLOGY SYDNEY
Research Seminars in Finance
Topic: Credit Supply and (In)organic Growth
Speaker: Tobias Berg, Frankfurt School of Finance & Management
Abstract: This paper highlights the importance of distinguishing between organic and inorganic growth when measuring real effects of financial frictions. Exploiting a quasiexogenous positive shock to credit supply, we document that affected firms borrow larger amounts and exhibit stronger asset, employment, and sales growth. All growth effects, however, are inorganic, and the quality of the credit supply induced acquisition activity is low. We provide a method for adjusting for inorganic growth components empirically and argue that it is important to distinguish inorganic from organic growth in any study that analyzes real effects of credit supply.
Date: Wednesday, 18th March 2020
Time: 12.00 – 1.00 p.m.
Venue: University of Technology, Sydney
Building 8, Room 08.002, Dr Chau Chak Wing Building
Dr Chau Chak Wing Building
14 - 28 Ultimo Road, Ultimo
Co-ordinator: Claire Liu (Ph: +61 2 9514 7748)
Enquiries: Duncan Ford (Ph: +61 2 9514 7714)