Tobias Berg , Frankfurt School of Finance & Management
Tobias Berg, Frankfurt School of Finance and Management, will present his paper “Credit supply shocks: financing real growth or takeovers?” (joint work with Daniel Streitz and Michael Wedow) at the finance seminar. This will be a hybrid seminar starting 14.15. You can either join in the Alfa seminar room or online.
Abstract: In this paper, we document that exogenous shifts to credit supply predominantly affect inorganic growth, with only limited effects on organic growth. We discuss implications of this finding for the understanding of the nature of credit supply shocks. In particular, we argue that an analysis of employment and productivity effects of M&A is crucial in order to understand real effects of credit supply shifts. We also provide a method for adjusting for inorganic growth components empirically that is generally applicable even if no detailed M&A data is available.