Kariya, Ankit; Thampy, Ashok - 2021
We study the evolution of firms' leverage around systemic banking crises. Using a sample of 40 recent systemic banking … crises, we find that firms' leverage is procyclical around banking crises, similar to the evolution of aggregate credit … around financial crises documented in the literature. In the cross-section, firms' leverage is more procyclical in banking …