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, 3rd June 2020
Time: 5.00 – 6.00 p.m. (Australian Eastern Standard Time)
Venue: This is on online Zoom webinar.
After registering, you will receive a confirmation email containing information on how to join the meeting, including an access link.
- The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
- There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
- Participants can use the Q&A facility to ask questions during the presentation. The moderator will then alert the speaker and ask the questions raised.
Co-ordinator: Harry Scheule
Enquiries: Duncan Ford