Karolin Kirschenmann's paper accepted in the Review of Finance
Article "Funding vs. real economy shock: The impact of the 2007-2009 crisis on small firms' credit availability" by Gunhild Berg (World Bank) and Karolin Kirschenmann has been accepted for publication in the Review of Finance.
Abstract:
We analyze how banks adjust their lending to small firms after distinct shocks from the cross-border transmission of the 2007-2009 crisis by using unique loan application and contract data from AccessBank Azerbaijan. These data allow us to disentangle the effects of a funding shock from the effects of a real shock. Contrary to conventional assumptions, we find that the funding shock works through reduced prospecting — as opposed to tightened lending standards — and leads to fewer loan applications among new applicants in particular, which improves the borrower pool. The real economy shock instead works through loan approval and affects SME rather than micro borrowers.
Information:
Paper can be downloaded from SSRN:
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Aalto computer scientists in STOC 2025
Two papers from Aalto Department of Computer Science were accepted to the Symposium on Theory of Computing (STOC).
New Academy Research Fellows and Academy Projects
A total of 44 Aalto researchers received Academy Research Fellowship and Academy Project funding from the Research Council of Finland – congratulations to all!
Aalto University's Wood Studio's future visions of Finland's most valuable wood are presented at the Finnish Forest Museum Lusto
Curly birch – the tree pressed by the devil – exhibition will be on display in Lusto until March 15, 2026.