Danat-connected firmsā balance sheets can be benchmarked against non-bank-connected peers.
Evidence
Panel A plots leverage for all joint stock companies not connected to any of the four great banks (black line), ļ¬rms connected to Danatbank (blue line), and ļ¬rms connected to other great banks (red line). Panel B plots the distribution of log assets for the wage bill sample of ļ¬rms (blue line), as well as for all joint stock companies in 1929 (black line). ā Sebastian Doerr et al., Financial Crises and Politicalā¦, 243
Categorization
- QUESTION: If Danat-linked firms were systematically smaller or more levered pre-crisis, this could confound the vote-share result with firm-level distress.