@article{TEXTUAL,
      recid = {11533},
      author = {Biermann, Marcus and Huber, Kilian},
      title = {Tracing the International Transmission of a Crisis through  Multinational Firms},
      journal = {The Journal of Finance},
      address = {2024-04-08},
      number = {TEXTUAL},
      abstract = {We show that multinational firms transmit shocks across  countries through their internal capital markets. We study  a credit supply shock to parent firms in Germany.  International affiliates outside Germany supported their  parents through internal lending, became financially  constrained themselves, and experienced lower real growth.  We find that managers were “Darwinist” with respect to  international affiliates but “Socialist” in the home  country, that internal capital markets transmitted the  credit shock more strongly than a nonfinancial shock, and  that access to developed credit markets attenuated the real  effects. The total real impact of shock transmission  through multinationals on foreign economies was large.},
      url = {http://knowledge.uchicago.edu/record/11533},
}