Firms and their distressed banks: lessons from the Norwegian banking crisis
We use the near-collapse of the Norwegian banking system during the period 1988–1991 to measure the impact of bank distress announcements on the stock prices of firms maintaining a relationship with a distressed bank. Although banks experienced large and permanent downward revisions in their equity...
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| Veröffentlicht in: | Journal of financial economics 2003, Vol.67 (1), p.81-112 |
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| container_title | Journal of financial economics |
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| creator | Ongena, Steven Smith, David C Michalsen, Dag |
| description | We use the near-collapse of the Norwegian banking system during the period 1988–1991 to measure the impact of bank distress announcements on the stock prices of firms maintaining a relationship with a distressed bank. Although banks experienced large and permanent downward revisions in their equity value during the event period, firms maintaining relationships with these banks faced only small and temporary changes, on average, in stock price. Firms with access to unused liquid bank funds and firms that issued equity just prior to the crisis experience relatively high abnormal returns. Overall, the aggregate impact of bank distress appears small. |
| doi_str_mv | 10.1016/S0304-405X(02)00232-5 |
| format | Article |
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| identifier | ISSN: 0304-405X |
| ispartof | Journal of financial economics, 2003, Vol.67 (1), p.81-112 |
| issn | 0304-405X 1879-2774 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_38408236 |
| source | RePEc; ScienceDirect Journals (5 years ago - present) |
| subjects | Abnormal returns Bank distress Bank failures Bank relationship Banking industry Banking system Banks Commercial banks Financial crisis Financial economics Information Norwegian banking crisis Stock prices Studies |
| title | Firms and their distressed banks: lessons from the Norwegian banking crisis |
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