IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v70y2020i6p521-540.html
   My bibliography  Save this article

Credit Crunch or Loan Demand Shortage: What Is the Problem with the SMEs’ Financing?

Author

Listed:
  • M. Belén Guercio

    (Instituto de Investigaciones Económicas y Sociales del Sur (IIESS) UNS-CONICET, Universidad Nacional del Sur. Departamento de Economía, Universidad Provincial del Sudoeste, Bahía Blanca, Argentina)

  • Lisana B. Martinez

    (Instituto de Investigaciones Económicas y Sociales del Sur (IIESS) UNS-CONICET, Universidad Nacional del Sur. Departamento de Economía, Universidad Provincial del Sudoeste, Bahía Blanca, Argentina)

  • Aurelio F. Bariviera

    (Universitat Rovira i Virgili, Reus, Spain)

  • Valeria Scherger

    (Instituto de Investigaciones Económicas y Sociales del Sur (IIESS) UNS-CONICET, Departamento de Economía, Universidad Nacional del Sur, Bahía Blanca, Argentina)

Abstract

The aim of this paper is to study the determinants of bank loan applications and financial access of small and medium enterprises from 2013 to 2015. We applied binary and ordered logit models to a sample of 27.811 firms from 37 countries from the Survey on the Access to Finance of Enterprises (SAFE). We provided evidence that larger firms and those belonging to the industry sector are more likely to apply for and obtain bank loans. A puzzling result was found regarding the matter of innovation. It is relevant for both application and access to bank loans, but in opposite ways: innovation boosts external finance applications but hampers actual financial access. Furthermore, the use of retained earnings enhances financial application and the effective financial access. This could indicate that internal funds are complementary, rather than substitutes in the firms’ financial structure. The results of the study are relevant to improve policies of SMEs access to finance in the European context.

Suggested Citation

  • M. Belén Guercio & Lisana B. Martinez & Aurelio F. Bariviera & Valeria Scherger, 2020. "Credit Crunch or Loan Demand Shortage: What Is the Problem with the SMEs’ Financing?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 70(6), pages 521-540, December.
  • Handle: RePEc:fau:fauart:v:70:y:2020:i:6:p:521-540
    as

    Download full text from publisher

    File URL: https://journal.fsv.cuni.cz/mag/article/show/id/1475
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    SMEs; European countries; loan access; loan application; firms’ demographic characteristics; innovation;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:fauart:v:70:y:2020:i:6:p:521-540. 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: . General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.