In this paper we study how the introduction of the euro has affected corporate financing in Europe. We use firm …-level data from eleven euro area countries as well as from a control group of five other European countries spanning the years … 1991–2006. We show that firms from euro area countries that previously had weak currencies have increased both their equity …

We study the financing policies of European public corporations prior to the euro crisis. Using data from eleven euro … countries and a control group of five other European countries over 1991-2006, we show that non-financial firms from euro … countries with previously weak currencies considerably increased their debt financing after the introduction of the euro. The …

Private sector borrowing has been identified as a major factor behind the euro crisis. We study the contribution of non …-financial public corporations to this finding. Using data from eleven euro countries and a control group of five other European … countries over 1991-2006, we show that firms from euro countries with previously weak currencies considerably increased their …