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The Determinants of Credit Rationing in Tunisia: A Survey among Credit Managers

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  • Manel Mazioud Chaabouni
  • Nadia Selmi

Abstract

This paper aims at explaining the financing structure of the Tunisian companies by the information asymmetry phenomenon as well as at checking whether the low share of loans in the financing of the Tunisian companies is reflected in a credit rationing. We have focused on the informational factor between banks and corporates since the contract between lenders and borrowers may include some limitations even if the legal rules do exist and are properly applied. Our analysis deals with the credit operations. We have restricted our study to the case of small and medium enterprises seeing their importance in our industrial network. We have analyzed the behavior of credit managers dealing with loan applications based on a survey addressed to the credit managers of small and medium enterprises. Our results suggest that Tunisian credit managers be risk averse-which results in a credit rationing. The estimates display that the reliability of accounting documents, the risk of adverse selection and the inefficient recovery procedures are the determinant of this rationing.

Suggested Citation

  • Manel Mazioud Chaabouni & Nadia Selmi, 2016. "The Determinants of Credit Rationing in Tunisia: A Survey among Credit Managers," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(5), pages 151-168, May.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:5:p:151-168
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    References listed on IDEAS

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    1. Jaffee, Dwight M & Modigliani, Franco, 1969. "A Theory and Test of Credit Rationing," American Economic Review, American Economic Association, vol. 59(5), pages 850-872, December.
    2. Donald R. Hodgman, 1960. "Credit Risk and Credit Rationing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 74(2), pages 258-278.
    3. Douglas W. Diamond, 1991. "Debt Maturity Structure and Liquidity Risk," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(3), pages 709-737.
    4. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    5. Mitchell A. Petersen & Raghuram G. Rajan, 2002. "Does Distance Still Matter? The Information Revolution in Small Business Lending," Journal of Finance, American Finance Association, vol. 57(6), pages 2533-2570, December.
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    More about this item

    Keywords

    credit market; credit rationing; information asymmetry; financing structure; small & medium enterprises;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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