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Access to finance and funding composition during the crisis: A firm-level analysis of Latin American countries

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  • Sandra M. Leitner
  • Robert Stehrer

Abstract

This paper describes the effects of the 2009 global financial crisis on firms' access to financing for investment projects. The analysis uses data from the Latin American and Caribbean Enterprise Surveys 2006 and 2010, demonstrating that during the crisis, the availability of internal sources was crucial for larger and foreign-owned firms or firms that were part of a group, while state-owned firms did not enjoy any financial privileges. Firms sought greater bank and supply-chain financing, larger firms used less internal funds, foreign firms relied more on internal funds, while firms that export and import used bank credits more intensively.

Suggested Citation

  • Sandra M. Leitner & Robert Stehrer, 2013. "Access to finance and funding composition during the crisis: A firm-level analysis of Latin American countries," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 50(1), pages 1-47, May.
  • Handle: RePEc:ioe:cuadec:v:50:y:2013:i:1:p:1-47
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Selçuk BALI & Mete GÜLER, 2016. "The IMPACTS of the GLOBAL FINANCIAL CRISIS on LATIN AMERICAN COUNTRIES," Eurasian Business & Economics Journal, Eurasian Academy Of Sciences, vol. 4(4), pages 1-10, January.
    2. Sandra M. Leitner & Robert Stehrer, 2015. "What Determines SMEs’ Funding Obstacles to Bank Loans and Trade Credits?," wiiw Working Papers 114, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    Financial crisis; access to financing; capital structure; firm-level analysis; Latin America;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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