Skip to content
Back to outputs

Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis

Research output: Contribution to journalArticlepeer-review

Standard

Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis. / Akbar, Saeed; Rehman, Shafiq Ur; Liu, Jia; Shah, Syed Zulfiqar Ali.

In: Research in International Business and Finance, Vol. 42, 01.12.2017, p. 559-571.

Research output: Contribution to journalArticlepeer-review

Harvard

Akbar, S, Rehman, SU, Liu, J & Shah, SZA 2017, 'Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis', Research in International Business and Finance, vol. 42, pp. 559-571. https://doi.org/10.1016/j.ribaf.2017.07.001

APA

Akbar, S., Rehman, S. U., Liu, J., & Shah, S. Z. A. (2017). Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis. Research in International Business and Finance, 42, 559-571. https://doi.org/10.1016/j.ribaf.2017.07.001

Vancouver

Author

Akbar, Saeed ; Rehman, Shafiq Ur ; Liu, Jia ; Shah, Syed Zulfiqar Ali. / Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis. In: Research in International Business and Finance. 2017 ; Vol. 42. pp. 559-571.

Bibtex

@article{11db940544ef414c8a5262da3dbf56f9,
title = "Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis",
abstract = "This study examines the effects of lending constraints on the financial policies of UK publicly listed companies during the 2007–2009 financial crisis. Using a sample of 2039 publicly listed firms, the results of our analysis indicate that financial policies of firms are sensitive to variations in the supply of external finance and credit, suggesting that liquidity-constraint firms with low cash reserves suffered more at the time of the credit crunch. While managing through the potential negative effects of the financial crisis, majority of the sample companies increased the use of internal finance and deferred the payments of dividends which helped them apply effective financial policies during the crisis period. The findings of this study also document that during the crisis period, financial policies of firms were exposed to variations in the supply of finance and credit, which, by implication, posed a threat to their operations, sustainability and growth. Our findings produce awareness about the negative effects of the non-availability of external finance and credit supply to listed companies, and signify the role of different financing channels and credit system in the operations and growth of listed companies. These findings have implications for financial regulation and policy making in the UK.",
keywords = "Financial crisis, Financial policies, Financial management, Total debt, Trade credit, Credit crunch",
author = "Saeed Akbar and Rehman, {Shafiq Ur} and Jia Liu and Shah, {Syed Zulfiqar Ali}",
year = "2017",
month = dec,
day = "1",
doi = "10.1016/j.ribaf.2017.07.001",
language = "English",
volume = "42",
pages = "559--571",
journal = "Research in International Business and Finance",
issn = "0275-5319",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Credit supply constraints and financial policies of listed companies during the 2007–2009 financial crisis

AU - Akbar, Saeed

AU - Rehman, Shafiq Ur

AU - Liu, Jia

AU - Shah, Syed Zulfiqar Ali

PY - 2017/12/1

Y1 - 2017/12/1

N2 - This study examines the effects of lending constraints on the financial policies of UK publicly listed companies during the 2007–2009 financial crisis. Using a sample of 2039 publicly listed firms, the results of our analysis indicate that financial policies of firms are sensitive to variations in the supply of external finance and credit, suggesting that liquidity-constraint firms with low cash reserves suffered more at the time of the credit crunch. While managing through the potential negative effects of the financial crisis, majority of the sample companies increased the use of internal finance and deferred the payments of dividends which helped them apply effective financial policies during the crisis period. The findings of this study also document that during the crisis period, financial policies of firms were exposed to variations in the supply of finance and credit, which, by implication, posed a threat to their operations, sustainability and growth. Our findings produce awareness about the negative effects of the non-availability of external finance and credit supply to listed companies, and signify the role of different financing channels and credit system in the operations and growth of listed companies. These findings have implications for financial regulation and policy making in the UK.

AB - This study examines the effects of lending constraints on the financial policies of UK publicly listed companies during the 2007–2009 financial crisis. Using a sample of 2039 publicly listed firms, the results of our analysis indicate that financial policies of firms are sensitive to variations in the supply of external finance and credit, suggesting that liquidity-constraint firms with low cash reserves suffered more at the time of the credit crunch. While managing through the potential negative effects of the financial crisis, majority of the sample companies increased the use of internal finance and deferred the payments of dividends which helped them apply effective financial policies during the crisis period. The findings of this study also document that during the crisis period, financial policies of firms were exposed to variations in the supply of finance and credit, which, by implication, posed a threat to their operations, sustainability and growth. Our findings produce awareness about the negative effects of the non-availability of external finance and credit supply to listed companies, and signify the role of different financing channels and credit system in the operations and growth of listed companies. These findings have implications for financial regulation and policy making in the UK.

KW - Financial crisis

KW - Financial policies

KW - Financial management

KW - Total debt

KW - Trade credit

KW - Credit crunch

U2 - 10.1016/j.ribaf.2017.07.001

DO - 10.1016/j.ribaf.2017.07.001

M3 - Article

VL - 42

SP - 559

EP - 571

JO - Research in International Business and Finance

JF - Research in International Business and Finance

SN - 0275-5319

ER -

ID: 20504679