Macroeconomic Crisis and Individual Performance: The Mexican Experience

Tinbergen Institute Working Paper No. TI 04-057/2

42 Pages Posted: 3 Jun 2004  

Karen Watkins

UPAEP

J. Spronk

Erasmus Research Institute of Management (ERIM)

Dick J. C. van Dijk

Erasmus University Rotterdam - Erasmus School of Economics - Econometric Institute; ERIM

Date Written: May 2004

Abstract

This paper considers financial, operational, solvency, and performance ratios, in order to detect when there were balance sheets' variations related to the 1994 Mexican currency crisis. Quarterly results for 88 non-financial Mexican companies that survived the crisis are used, and tests for structural change are performed. Findings show that generally firms' balance sheets deteriorated between the fourth quarters of 1993 and 1995, which points the possibility of corporate roots of the macroeconomic crisis. Although in most cases firms' balance sheets improved after the crisis, the recovery was partial and gradual, and overall this episode was prejudicial even for surviving companies.

Keywords: Financial crisis, firm-level data

JEL Classification: F3, G0, G3

Suggested Citation

Watkins, Karen and Spronk, J. and van Dijk, Dick J. C., Macroeconomic Crisis and Individual Performance: The Mexican Experience (May 2004). Tinbergen Institute Working Paper No. TI 04-057/2. Available at SSRN: https://ssrn.com/abstract=554562 or http://dx.doi.org/10.2139/ssrn.554562

Karen Watkins (Contact Author)

UPAEP ( email )

21 sur 1103 Barrio
Puebla, 72410
Mexico

Jaap Spronk

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Dick J.C. Van Dijk

Erasmus University Rotterdam - Erasmus School of Economics - Econometric Institute

P.O. Box 1738
3000 DR Rotterdam
Netherlands

ERIM ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1263 (Phone)
+31 10 4089162 (Fax)

HOME PAGE: http://people.few.eur.nl/djvandijk

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