Review of Corporate Finance > Vol 3 > Issue 3

Who Pays for Financial Crises? Price and Quantity Rationing of Publicly-Listed and Privately-Held Borrowers

Allen N. Berger, University of South Carolina and University of Pennsylvania, USA, and European Banking Center, Tilburg, The Netherlands, , Tanakorn Makaew, University of Southern California, USA, , Rima Turk-Ariss, International Monetary Fund, USA,
Suggested Citation
Allen N. Berger, Tanakorn Makaew and Rima Turk-Ariss (2023), "Who Pays for Financial Crises? Price and Quantity Rationing of Publicly-Listed and Privately-Held Borrowers", Review of Corporate Finance: Vol. 3: No. 3, pp 275-327.

Publication Date: 26 Jul 2023
© 2023 A. N. Berger, T. Makaew and R. Turk-Ariss
Financial markets,  Corporate finance,  International business
JEL Codes: G01, G21, O16
Credit rationingforeign banksfinancial crisesrelationship lendingprivate firms


Download article
In this article:
Research Questions 
Data and Sample Construction 
Changes in Bank Lending Quantities between Normal Times and the GFC 
Multivariate Analysis of Lending Quantities 
Loan Spreads during Normal Times and the GFC 
Spread of Loans Involving Banks and Borrowers from the United States 
Additional Tests 


Financial crises yield price and quantity rationing of creditworthy borrowers. However, little is known about the relative severity of these rationing types, which borrowers are rationed most, and differences between these borrowers in different nations. Our international data on over 18,000 business loans suggest that publicly-listed firms are more often price rationed, whereas privately-held firms are more frequently quantity rationed, consistent with implications of Calomiris and Hubbard’s (1990) asymmetric information model. We uncover further differences between foreign and domestic banks and between U.S. and non-U.S. banks. We also demonstrate that financial crises change loan pricing.



Review of Corporate Finance, Volume 3, Issue 3 Special Issue on Emerging Issues in Banking: Articles Overiew
See the other articles that are part of this special issue.