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Firms’ Financing Constraints: Do Perceptions Match the Actual Situation?

Listed author(s):
  • Annalisa Ferrando

    (European Central Bank)

  • Klaas Mulier

    (Ghent University)

This paper draws on the SAFE survey on access to finance for a sample of 11,886 firms in the Euro Area which are matched with their nearest neighbour in a balance sheet dataset with 2.3 million firms. We investigate the role of firm characteristics with respect to firms’ perceived financing constraints and actual financing constraints in the period 2009-2011. Low-profit firms are more likely to face actual financing constraints. Low working capital and high leverage ratios explain actual financing constraints to a lesser extent. Further, firms are more likely to perceive access to finance problematic when they have more debt with short-term maturity. Finally, firm age, but not size, is important in explaining both the perceived and the actual financial constraints.

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File URL: http://www.esr.ie/article/download/292/104/292-824-1-PB.pdf
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 46 (2015)
Issue (Month): 1 ()
Pages: 87-117

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Handle: RePEc:eso:journl:v:46:y:2015:i:1:p:87-117
Contact details of provider: Web page: http://www.esr.ie

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