• touko 12
  Skype

  tiistai 12.5.2020, 10.30

  Lisää kalenteriin

Mikko Mäkinen (BOFIT): Financial Crisis: A Game Changer for Worst-Hit Banks?

Abstract
This paper analyzes whether the banks that are worst-hit by a financial crisis can learn from their bad experience. One hypothesis is that the poor performing banks cannot learn and change their post-crisis behavior and therefore underperform other banks after the crisis is over. The alternative hypothesis is that the worst-performing banks are able to learn and change their post-crisis behavior so that there is no difference in performance between the worst banks and other banks in post-crisis years. Using a difference-in-differences approach, rich data from the Russian banking sector and utilizing the 2008 Global Financial Crisis as a source of an independent variation across banks, I find that the worst crisis-hit banks continue to underperform other banks in post-crisis years, which is inconsistent with the learning hypothesis. Some robustness checks with alternative regression specifications are provided.

Online BOFIT seminars are open to all researchers interested in the subjects covered. Those wishing to attend a seminar are kindly asked to register in advance, by filling in the online registration form The registration for each seminar is open until 9:00 am the day of the seminar. You will receive a link to join the seminar by email at the latest one hour before the seminar is scheduled to begin.