Credit Supply and (In)organic Growth

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
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, 18th March 2020
Time: 12.00 – 1.00 p.m.
Venue: University of Technology, Sydney
              Building 8, Room 08.002, Dr Chau Chak Wing Building
              Dr Chau Chak Wing Building
              14 - 28 Ultimo Road, Ultimo

Co-ordinator: Claire Liu  (Ph: +61 2 9514 7748)

Enquiries: Duncan Ford (Ph: +61 2 9514 7714)

Back to Finance seminars
Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.