The impact of 2008 financial crisis on firm's productivity:Evidence from Latvia, Lithuania and Romania

Demir, Ender, Lau, Chi Keung and Bilgin, Mehmet Huseyin (2014) The impact of 2008 financial crisis on firm's productivity:Evidence from Latvia, Lithuania and Romania. Journal of Security and Sustainability Issues, 3 (4). pp. 27-35. ISSN 2029-7025

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Abstract

This study examines the impact of 2008 financial crisis on firms’ productivity in Latvia, Lithuania, and Romania by using the World Bank’s Enterprise Financial Crisis Survey data. The Work Bank carried out the survey to have a short, quick, and cost-efficient evaluation of the effect of the 2008 global financial crisis on companies in European and Central Asian countries. We find that different firm-specific variables affect the firm’s productivity in Latvia, Lithuania, and Romania. Firms benefited from huge market potential and this location proximity to capital city can improve the chance of being less affected from the crisis only in Latvia. On the contrary to the findings for Latvia, the capital city variables are not statistically significant for firms in Lithuania and Romania. Working capital financing matters for firms in Latvia and Lithuania while short-term leverage is important for firms in Lithuania and Romania. More interestingly, we observe that R&D expenses may not able to improve firms’ performance at the time of financial crisis.

Item Type:	Article
Subjects:	L100 Economics N300 Finance
Department:	Faculties > Business and Law > Newcastle Business School
Related URLs:	http://jssidoi.org/dok/JOURNAL%20OF%20SE...
Depositing User:	Chi Keung Lau
Date Deposited:	27 Aug 2014 11:42
Last Modified:	19 Nov 2019 09:50
URI:	http://nrl.northumbria.ac.uk/id/eprint/17494

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