More from the Author

• Working Paper | 2015

  Large Banks and the Transmission of Financial Shocks

  Vitaly Bord, Victoria Ivashina and Ryan Taliaferro

  We explore the role of large banks in propagating economic shocks across the U.S. economy. We show that in 2007 and 2008, large banks operating in U.S. counties most affected by the decline in real estate prices contracted their credit to small businesses in counties that were not affected by falling real estate prices. These exposed banks were also more likely to completely cease operations in unaffected counties. By contrast, healthy banks — those not exposed to real estate price shocks — were more likely to expand operations and even to enter new banking markets, capturing market share in both loans and deposits. On average, the market share gain of healthy banks relative to exposed banks was a standard deviation above the long-run historic average market share growth. This offsetting effect was stronger for counties with a larger presence of exposed banks, and it resulted in changes in market share composition that had lasting effects. However, the net effect was negative and counties with a larger presence of exposed banks experienced slower overall growth in deposits, loans, employment, and number of small business establishments. These effects persist for several years after the initial shock.

  Keywords: System Shocks; Banks and Banking; Banking Industry; United States;

  Citation:

  Bord, Vitaly, Victoria Ivashina, and Ryan Taliaferro. "Large Banks and the Transmission of Financial Shocks." Working Paper, November 2015.  View Details

  CiteView DetailsSSRN Read Now

  Related

• Case | HBS Case Collection | August 2001 (Revised September 2015)

  Operations at the Donner Company

  H. Kent Bowen

  A small manufacturer of circuit boards faces product and operations-management problems. This case analyzes the production capacity at various stages and examines bottlenecks and product flow decisions. A detailed look at the problems and a discussion of the tools and techniques of process analysis is used to determine the importance of problems, identify solutions, and discuss implementation issues.

  Keywords: Operations; Production; Performance Capacity; Business Processes; Logistics; Electronics Industry; Manufacturing Industry;

  Citation:

  Bowen, H. Kent. "Operations at the Donner Company." Harvard Business School Case 602-040, August 2001. (Revised September 2015.)  View Details

  CiteView DetailsEducators

  Related

• Case | HBS Case Collection | December 2002 (Revised February 2015)

  Jim Sharpe: Extrusion Technology, Inc. (Abridged)

  H. Kent Bowen and Barbara Feinberg

  Jim Sharpe, 10 years after receiving his MBA from Harvard and working for others, has finally become his own boss and 100% owner of manufacturer of aluminum extrusions. After 10 months of an unfunded search, he acquires the business in an LBO and prepares to face his employees on the first day.

  Keywords: Search Funds; search; entrepreneurial management; entrepreneurship; operations strategy; Acquisitions; work/family balance; work-life balance; Unions; union; turnarounds; funding model; LBO; bank debt; Bank loans; Equity Investment; career management; negotiation; Small Business; Work-Life Balance; Negotiation; Operations; Labor Unions; Investment; Entrepreneurship; Financing and Loans; Borrowing and Debt; Business Strategy; Manufacturing Industry;

  Citation:

  Bowen, H. Kent, and Barbara Feinberg. "Jim Sharpe: Extrusion Technology, Inc. (Abridged) ." Harvard Business School Case 603-084, December 2002. (Revised February 2015.)  View Details

  CiteView DetailsEducatorsPurchase

  Related