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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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Bond vs bank finance and the Great Recession, Finance Research Letters March (2020). Martins, Manuel M. F. ; Verona, Fabio

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Martins, Manuel M. F. ; Verona, Fabio 
Number of authors
Status Published
Year of publication 2021 
Date 20.05.2020 
Name of article Bond vs bank finance and the Great Recession 
Name of journal Finance Research Letters
Volume of issue 39 
Number of issue March 
Abstract The typical increase of the corporate bond-to-bank ratio during downturns is known to mitigate business cycle recessions. In the three longest and deepest post-war U.S. recessions this ratio didn't increase from their outsets. In this paper we focus on the timing of the corporate bank-to-bond substitution in the Great Recession, simulating counterfactual paths for output growth under plausible notional behaviors of the bond-to-bank ratio. We find that the Great Recession would have been milder and the recovery much stronger if the bank-to-bond substitution had started since the outset of the recession and evolved thereafter as in most U.S. recessions.
Free text descriptor in Finnish yritykset; rahoitus; pankit; joukkovelkakirjat; suhdannevaihtelut 
Free text descriptor in English corporate finance, bond finance, bank finance, Great Recession, business cycle 
JEL-codes E32, E44, G00 
ISSN / e-ISSN 1544-6123 
auki Internet addresses
Additional information Available online 20 May 2020.
Open Access Not known