Estimation of the firm`s balance sheet channel effects during the economic crisis: Case of Croatia

Mislav Sagovac · Luka Sikic

Croatian Review of Economic, Business and Social Statistics, (2), 2, pp. 10--29, https://doi.org/10.1515/crebss-2016-0010

Ekonomska teorija prepoznaje važnost kanala bilance poduzeća, što stoji u oštroj suprotnosti s neoklasičnom teorijom investicija. Rad analizira reakciju poduzeća na ekonomsku krizu u uzorku hrvatskih poduzeća. Glavne varijable interesa su investicije i zaposlenost. Procjenjuje se OLS model koji uvažava heterogenu reakciju različito zaduženih poduzeća na šok krize. Empirijski model proširen je tako da uvažava industrijske i županijske učinke. Provjere robusnosti provedene su za različite zavisne i kontrolne varijable te njihove interakcije. Rezultati snažno i robusno potvrđuju važnost kanala bilance poduzeća.

@Article{sagovac_estimation_2016,
  title = {Estimation of the firm�~s balance sheet channel effects during the economic crisis: Case of Croatia},
  language = {en},
  author = {Mislav {\a'L} agovac and Luka {\a'L} iki{\"A}NA},
  pages = {10--29},
  file = {A�agovac and A�ikić - 2016 - Estimation of the firm�~s balance sheet channel eff.pdf:C\:\\Users\\Lukas\\Zotero\\storage\\L9RVSLAY\\A�agovac and A�ikić - 2016 - Estimation of the firm�~s balance sheet channel eff.pdf:application/pdf},
  volume = {2},
  issn = {2459-5616},
  url = {https://www.degruyter.com/doi/10.1515/crebss-2016-0010},
  doi = {10.1515/crebss-2016-0010},
  abstract = {Economic theory recognizes the importance of the firm’s balance sheet channel. This stands in stark contrast to the neoclassical theory of investment. This paper analyses the response of firms to the economic crisis in the sample of Croatian firms. Our main variables of interest are investment and employment. We estimated the OLS model that accounts for a heterogeneous response to the crisis shock of differently leveraged firms. The empirical model is augmented so that it accounts for industry and county effects. The robustness checks are performed for different dependent as well as control variables and interactions. The results strongly and robustly confirm the importance of the firm’s balance sheet channel.},
  number = {2},
  urldate = {2020-11-27},
  journal = {Croatian Review of Economic, Business and Social Statistics},
  month = {dec},
  year = {2016},
  shorttitle = {Estimation of the firm�~s balance sheet channel effects during the economic crisis},
  pubtype = {2},
  date = {2016-01-01},
}