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Replication data for: Credit Relationships and Business Bankruptcy during the Great Depression

Version
1
Resource Type
Dataset
Creator
  • Hansen, Mary Eschelbach
  • Ziebarth, Nicolas L.
Publication Date
2017-01-06
Description
  • Abstract

    Credit relationships are sticky. Stickiness makes relationships beneficial to borrowers in times of their own distress but makes them potentially problematic when lenders themselves face hardship. To examine the role of credit relationships during a financial crisis, we exploit a natural experiment in Mississippi during the Great Depression that generated plausibly exogenous differences in financial distress for banks. Using new data drawn from the publications of the credit rating agency Dun & Bradstreet and from original bankruptcy filings, we show that financial distress increased business exit but did not increase the bankruptcy rate. Financial distress caused both banks and trade creditors to recalibrate their collections strategies, which is revealed by changes in the geographical distribution of the creditors of bankrupt businesses.
Availability
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Relations
  • Is supplemented by
    DOI: 10.1257/mac.20150218 (Text)
Publications
  • Hansen, Mary Eschelbach, and Nicolas L. Ziebarth. “Credit Relationships and Business Bankruptcy during the Great Depression.” American Economic Journal: Macroeconomics 9, no. 2 (April 2017): 228–55. https://doi.org/10.1257/mac.20150218.
    • ID: 10.1257/mac.20150218 (DOI)

Update Metadata: 2019-10-13 | Issue Number: 1 | Registration Date: 2019-10-13

Hansen, Mary Eschelbach; Ziebarth, Nicolas L. (2017): Replication data for: Credit Relationships and Business Bankruptcy during the Great Depression. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. http://doi.org/10.3886/E114125V1