Determinants of the choice leasing vs Bank Loan: evidence from the french sme by Kacm
AbstractThe question of leasing credit as a substitute or complement of a banking loan has still not been resolved in the financial literature. As a continuation of these arguments, the objective of this article is, on the one hand, to determine the characteristics of firms using leasing credit and on the other hand, to better understand the relationship between leasing and credit rationing. Firstly, our results suggest that SME use leasing all the more the leasing so when they are young, leveraged, less solvent and that they present an small size and an important failure probability. Thus, leasing pushes back the limits of banking debt for firms that have no access to it. Secondly, our results suggest a strong and significant relationship between credit rationing and the use of leasing. In this framework the latter appears to be a last resort financing.
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Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00204911.
Date of creation: Feb 2007
Date of revision:
Publication status: Published, Investigacion Operational, 2007, 28, 2, 120-130
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Leasing; credit rationing; SME; Self organising maps (SOM);
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- Steven A. Sharpe & Hien H. Nguyen, 1994.
"Capital market imperfections and the incentive to lease,"
Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.)
94-5, Board of Governors of the Federal Reserve System (U.S.).
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