Balduzzi, Pierluigi; Brancati, Emanuele; Schiantarelli, … - Dipartimento di Economia e Finanza (DEF), Libera … - 2014
We test whether financial fluctuations affect firmsÕ decisions through their impact on banksÕ cost of funding. We exploit two shocks to Italian banksÕ CDS spreads and equity valuations: the 2007Ð 2009 financial crisis and the 2010Ð2012 sovereign debt crisis. Using newly available data...