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Credit Rationing and Mature French SMEs: A Disequilibrium Model

Author

Listed:
  • Philippe Adair

    (University Paris-Est Creteil Val de Marne)

  • Mohamed Adaskou

    (University Ibn Zhor)

Abstract

A conventional assumption that deserves testing is that small and medium-sized enterprises (SMEs) are most affected by credit crunch. In this respect, a disequilibrium model is designed to analyse the determinants of credit rationing upon a balanced panel of 2,370 mature French SMEs over the period 2002-2010. According to the estimates of simultaneous equations, the desired demand for bank credit is determined by exogenous factors from the supply-side. The credit supply-side validates best trade-off theory, whereas the credit demand-side validates best pecking order theory. The average share of rationed SMEs is seven per cent of the sample, suggesting that access to bank loans is not a major issue for mature French SMEs.

Suggested Citation

  • Philippe Adair & Mohamed Adaskou, 2020. "Credit Rationing and Mature French SMEs: A Disequilibrium Model," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(1), pages 55-72, June.
    • Handle: RePEc:ana:journl:v:6:y:2020:i:1:p:55-72
    DOI: 10.22440/wjae.6.1.4
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    References listed on IDEAS

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    More about this item

    Keywords

    Balanced panel; Capital structure; Credit rationing; Disequilibrium model; French SMEs;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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