SSE/EFI Working Paper Series in Business Administration
L. Peter Jennergren
The Swedish Finance Company Crisis -- Could It Have Been Anticipated?
Abstract: The Swedish finance company crisis was a kind of "run"
that happened in September, 1990. It marked the beginning of the Swedish
banking crisis of the early 1990's. The crisis was initially focused on the
finance company Nyckeln. The specific negative information about Nyckeln is
identified, as well as how it spread only very late, or not at all, to the
supervisory authority and to the banks that were involved in lending to the
finance companies. The paper then inquires whether there were warning signs
of the forthcoming crisis in capital market information and other public
information, by means of the usual event study methodology. The data that
are used include indices for the banking industry and the real estate and
construction industry, and share prices and trading volume for finance
companies. The conclusion is that the crisis really came as a surprise,
with very little advance warning.
Keywords: Finance companies; banking crisis; event study; (follow links to similar papers)
32 pages, May 3, 2001, Revised April 22, 2002
- This paper is published as:
Jennergren, L. Peter, (2002), 'The Swedish Finance Company Crisis -- Could It Have Been Anticipated?', Scandinavian Economic History Review, Vol. 50, No. 2, pages 7-30
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