Advanced Search
MyIDEAS: Login to save this book or follow this series

Enterprise Size, Financing Patterns, and Credit Constraints in Brazil : Analysis of Data from the Investment Climate Assessment Survey

Contents:

Author Info

  • Anjali Kumar
  • Manuela Francisco
Registered author(s):

    Abstract

    Enterprise Size, Financing Patterns, and Credit Constraints in Brazil investigates the importance of firm size with respect to accessing credit. The principal findings are that size strongly affects access to credit compared to firm performance, and other factors, such as management education, location or the industrial sector to which the firm belongs. Additional findings are that the impact of size on access to credit is greater for longer term loans and that public financial institutions are more likely to lend to large firms. Finally, financial access constraints may have a less significant differential impact across firms of different sizes than other constraints, though cost of finance as a constraint is very important.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/7330/32334.pdf?sequence=1
    Download Restriction: no

    Bibliographic Info

    as in new window
    This book is provided by The World Bank in its series World Bank Publications with number 7330 and published in 2005.

    ISBN: 987-0-8213-6129-0
    Handle: RePEc:wbk:wbpubs:7330

    Contact details of provider:
    Postal: 1818 H Street, N.W., Washington, DC 20433
    Phone: (202) 477-1234
    Email:
    Web page: https://openknowledge.worldbank.org
    More information through EDIRC

    Related research

    Keywords: Finance and Financial Sector Development - Microfinance Economic Theory and Research Banks and Banking Reform Finance and Financial Sector Development - Financial Intermediation Infrastructure Economics and Finance - Private Participation in Infrastructure;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Allen N. Berger & Gregory E. Udell, 1994. "Lines of Credit and Relationship Lending in Small Firm Finance," Economics Working Paper Archive, Levy Economics Institute wp_113, Levy Economics Institute.
    2. Chakravarty, Sugato & Scott, James S, 1999. "Relationships and Rationing in Consumer Loans," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 72(4), pages 523-44, October.
    3. Berger, A.N. & Goldberg, L.G. & White, L.J., 2001. "The Effects of Dynamic Change in Bank Competition on the Supply of Small Business Credit," New York University, Leonard N. Stern School Finance Department Working Paper Seires, New York University, Leonard N. Stern School of Business- 01-07, New York University, Leonard N. Stern School of Business-.
    4. Allen N. Berger & Anthony Saunders & Joseph M. Scalise & Gregory F. Udell, 1997. "The Effects of Bank Mergers and Acquisitions on Small Business Lending," New York University, Leonard N. Stern School Finance Department Working Paper Seires, New York University, Leonard N. Stern School of Business- 97-1, New York University, Leonard N. Stern School of Business-.
    5. Evzen Kocenda & Jan Svejnar, 2003. "Ownership and Firm Performance after Large-Scale Privatization," CERGE-EI Working Papers, The Center for Economic Research and Graduate Education - Economic Institute, Prague wp209, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
    6. Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers, National Bureau of Economic Research, Inc 1393, National Bureau of Economic Research, Inc.
    7. Douglas W. Diamond, 1998. "Reputation Acquisition in Debt Markets," Levine's Working Paper Archive, David K. Levine 602, David K. Levine.
    8. Bester, Helmut, 1987. "The role of collateral in credit markets with imperfect information," European Economic Review, Elsevier, Elsevier, vol. 31(4), pages 887-899, June.
    9. Allen N. Berger & Seth D. Bonime & Lawrence G. Goldberg & Lawrence J. White, 1999. "The Dymanics of Market Entry: The Effects of Mergers and Acquisitions on De Novo Entry and Small Business Lending in the Banking Industry," Working Papers, New York University, Leonard N. Stern School of Business, Department of Economics 99-13, New York University, Leonard N. Stern School of Business, Department of Economics.
    10. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Måns Söderbom & Abena Oduro & Remco Oostendorp & Cathy Pattillo & Francis Teal & Albert Zeufa, 2000. "Credit constraints in manufacturing enterprises in Africa," CSAE Working Paper Series, Centre for the Study of African Economies, University of Oxford 2000-24, Centre for the Study of African Economies, University of Oxford.
    11. Angelini, P. & Di Salvo, R. & Ferri, G., 1998. "Availability and cost of credit for small businesses: Customer relationships and credit cooperatives," Journal of Banking & Finance, Elsevier, Elsevier, vol. 22(6-8), pages 925-954, August.
    12. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers, National Bureau of Economic Research, Inc 1396, National Bureau of Economic Research, Inc.
    13. Maria Cristina Trindade Terra, 2003. "Credit Constraints in Brazilian Firms: Evidence from Panel Data," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 57(2), pages 443-464, April.
    14. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "Does Local Financial Development Matter?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 119(3), pages 929-969, August.
    15. Lawrence G. Goldberg & Lawrence J. White, 1997. "De Novo Banks and Lending to Small Businesses: An Empirical Analysis," New York University, Leonard N. Stern School Finance Department Working Paper Seires, New York University, Leonard N. Stern School of Business- 98-039, New York University, Leonard N. Stern School of Business-.
    16. Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, American Finance Association, vol. 39(3), pages 575-92, July.
    17. Beck, T.H.L. & Levine, R. & Loayza, N., 2000. "Finance and the sources of growth," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-3125520, Tilburg University.
    18. Aaronson, Daniel & Bostic, Raphael W. & Huck, Paul & Townsend, Robert, 2004. "Supplier relationships and small business use of trade credit," Journal of Urban Economics, Elsevier, Elsevier, vol. 55(1), pages 46-67, January.
    19. Petersen, Mitchell A & Rajan, Raghuram G, 1994. " The Benefits of Lending Relationships: Evidence from Small Business Data," Journal of Finance, American Finance Association, American Finance Association, vol. 49(1), pages 3-37, March.
    20. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(5), pages S71-102, October.
    21. Zsuzsanna Fluck, 1999. "Capital Structure Decisions in Small and Large Firms: A Life-cycle Theory of Financing," New York University, Leonard N. Stern School Finance Department Working Paper Seires, New York University, Leonard N. Stern School of Business- 99-069, New York University, Leonard N. Stern School of Business-.
    22. King, Robert G & Levine, Ross, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 108(3), pages 717-37, August.
    23. Paolo Finaldi Russo & Paola Rossi, 2001. "Credit constraints in Italian industrial districts," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 33(11), pages 1469-1477.
    24. Harris, Milton & Raviv, Artur, 1990. " Capital Structure and the Informational Role of Debt," Journal of Finance, American Finance Association, American Finance Association, vol. 45(2), pages 321-49, June.
    25. Beck, Thorsten & Asl Demirguc-Kunt & Maksimovic, Vojislav, 2002. "Financing patterns around the world : the role of institutions," Policy Research Working Paper Series, The World Bank 2905, The World Bank.
    26. Ferri, Giovanni & Messori, Marcello, 2000. "Bank-firm relationships and allocative efficiency in Northeastern and Central Italy and in the South," Journal of Banking & Finance, Elsevier, Elsevier, vol. 24(6), pages 1067-1095, June.
    27. Mitchell Berlin & Loretta J. Mester, 1997. "On the Profitability and Cost of Relationship Lending," Center for Financial Institutions Working Papers, Wharton School Center for Financial Institutions, University of Pennsylvania 97-43, Wharton School Center for Financial Institutions, University of Pennsylvania.
    28. Frazer, Garth, 2005. "Which Firms Die? A Look at Manufacturing Firm Exit in Ghana," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 53(3), pages 585-617, April.
    29. Judith Jordan & Julian Lowe & Peter Taylor, 1998. "Strategy and Financial Policy in UK Small Firms," Journal of Business Finance & Accounting, Wiley Blackwell, Wiley Blackwell, vol. 25(1&2), pages 1-27.
    30. R. Glenn Hubbard, 1998. "Capital-Market Imperfections and Investment," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 36(1), pages 193-225, March.
    31. Jayesh Kumar, 2003. "Ownership Structure and Corporate Firm Performance," Finance, EconWPA 0304004, EconWPA.
    32. Allen N. Berger & Asli Demirgüç-Kunt & Ross Levine & Joseph G. Haubrich, 2004. "Introduction: Bank concentration and competition: an evolution in the making," Proceedings, Federal Reserve Bank of Cleveland, Federal Reserve Bank of Cleveland, pages 433-451.
    33. Gaudreault, Valerie & Baldwin, John R. & Gellatly, Guy, 2002. "Financing Innovation in New Small Firms: New Evidence from Canada," Analytical Studies Branch Research Paper Series, Statistics Canada, Analytical Studies Branch 2002190e, Statistics Canada, Analytical Studies Branch.
    34. Diana Hancock and James A. Wilcox., 1998. "The "Credit Crunch" and the Availability of Credit to Small Business," Research Program in Finance Working Papers, University of California at Berkeley RPF-282, University of California at Berkeley.
    35. Becchetti, Leonardo & Trovato, Giovanni, 2002. " The Determinants of Growth for Small and Medium Sized Firms: The Role of the Availability of External Finance," Small Business Economics, Springer, Springer, vol. 19(4), pages 291-306, December.
    36. Allen N. Berger & Leora F. Klapper & Gegory F. Udell, 2001. "The ability of banks to lend to informationally opaque small businesses," Proceedings, Federal Reserve Bank of Chicago 709, Federal Reserve Bank of Chicago.
    37. repec:fth:oxesaf:2000-24 is not listed on IDEAS
    38. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," American Economic Review, American Economic Association, American Economic Association, vol. 92(5), pages 1335-1356, December.
    39. Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2001. "Personal Income Taxes and the Growth of Small Firms," NBER Chapters, National Bureau of Economic Research, Inc, in: Tax Policy and the Economy, Volume 15, pages 121-148 National Bureau of Economic Research, Inc.
    40. Joe Peek & Eric S. Rosengren, 1997. "Bank consolidation and small business lending: it's not just bank size that matters," Working Papers, Federal Reserve Bank of Boston 97-1, Federal Reserve Bank of Boston.
    41. Keld Laursen & Volker Mahnke & Per Vejrup-Hansen, 1999. "Firm Growth from a Knowledge Structure Perspective," DRUID Working Papers, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies 99-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    42. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, Elsevier, vol. 13(2), pages 187-221, June.
    43. Saito, Katrine Anderson & Villanueva, Delano P, 1981. "Transaction Costs of Credit to the Small-Scale Sector in the Philippines," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 29(3), pages 631-40, April.
    44. Hart, Peter E & Oulton, Nicholas, 1996. "Growth and Size of Firms," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(438), pages 1242-52, September.
    45. Myers, Stewart C., 1984. "Capital structure puzzle," Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    46. Allen N. Berger & Seth D. Bonime & Lawrence G. Goldberg & Lawrence J. White, 1999. "The dynamics of market entry: the effects of mergers and acquisitions on do novo entry and small business lending in the banking industry," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 1999-41, Board of Governors of the Federal Reserve System (U.S.).
    47. Cole, Rebel A., 1998. "The importance of relationships to the availability of credit," Journal of Banking & Finance, Elsevier, Elsevier, vol. 22(6-8), pages 959-977, August.
    48. Hancock, Diana & Wilcox, James A., 1998. "The "credit crunch" and the availability of credit to small business," Journal of Banking & Finance, Elsevier, Elsevier, vol. 22(6-8), pages 983-1014, August.
    49. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, American Economic Association, vol. 71(3), pages 393-410, June.
    50. Berger, Allen N, et al, 2004. "Bank Concentration and Competition: An Evolution in the Making," Journal of Money, Credit and Banking, Blackwell Publishing, Blackwell Publishing, vol. 36(3), pages 433-51, June.
    51. Jane S. Pollard, 2003. "Small firm finance and economic geography," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 3(4), pages 429-452, October.
    52. Levy, Brian, 1993. "Obstacles to Developing Indigenous Small and Medium Enterprises: An Empirical Assessment," World Bank Economic Review, World Bank Group, World Bank Group, vol. 7(1), pages 65-83, January.
    53. Willmore, Larry N., 1986. "The comparative performance of foreign and domestic firms in Brazil," World Development, Elsevier, Elsevier, vol. 14(4), pages 489-502, April.
    54. Clarke, George R. G. & Cull, Robert & Martinez Peria, Maria Soledad, 2001. "Does foreign bank penetration reduce access to credit in developing countries"evidence from asking borrowers," Policy Research Working Paper Series, The World Bank 2716, The World Bank.
    55. Strahan, Philip E. & Weston, James P., 1998. "Small business lending and the changing structure of the banking industry1," Journal of Banking & Finance, Elsevier, Elsevier, vol. 22(6-8), pages 821-845, August.
    56. Myers, Stewart C. & Majluf, Nicolás S., 1945-, 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management 1523-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    57. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers, National Bureau of Economic Research, Inc 6849, National Bureau of Economic Research, Inc.
    58. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1856, Harvard - Institute of Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Coleman, Nicholas & Feler, Leo, 2014. "Bank Ownership, Lending, and Local Economic Performance During the 2008-2010 Financial Crisis," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 1099, Board of Governors of the Federal Reserve System (U.S.).

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wbk:wbpubs:7330. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Breineder).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.