Finance and the business cycle: International, inter-industry evidence

• 成果类型: Article
• 署名作者: Braun, M; Larrain, B
• 署名单位: University of California System; University of California Los Angeles; Harvard University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2005.00757.x
• 发表日期: 2005
• 页码: 1097-1128
• 关键词: cash flow sensitivities; monetary-policy; market imperfections; credit conditions; transmission; BEHAVIOR; LAW

摘要

By considering yearly production growth rates for several manufacturing industries in more than 100 countries during (roughly) the last 40 years, we show that industries that are more dependent on external finance are hit harder during recessions. The observed difference in the behavior of industries is larger when financial frictions are thought to be more prevalent, linking the result directly to the financial mechanism hypothesis. In particular, more dependent industries are more strongly affected in recessions when they are located in countries with poor financial contractibility, and when their assets are softer or less protective of financiers.