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The Dynamics of Enterprise Financing in New EU Member. States in Comparative Perspective: the Aftermath of the Crisis


  • Cristiana Tudor

    () (Bucharest Academy of Economic Studies, Romania)


This study employs Enterprise Survey data to analyze business environment constraints and financing sources for investment for Romanian and Bulgarian companies at the end of 2009 and investigates the change in financing sources after the global financial crisis relative to a pre-crisis period (2005). The study also investigates whether the ownership structure of a firm affects its ability to finance investment and obtain capital. It is found that Romanian enterprises are generally more confronted with business constraints than Bulgarian companies and that the three main areas of concern for Romanian enterprises are Tax Rates, Workforce Education and Access to Finance. In addition, we find evidence that in both countries foreign-owned companies find access to finance less of a constraint that companies with domestic ownership do, but curiously they do not access external financing sources as much as companies with domestic capital. In fact, in both countries companies with foreign capital rely more on internal-generated sources and less on debt financing than domestic-owned enterprises. Relative to the pre-crisis period, at the end of 2009 Romanian companies rely less on internal-generated funds, while they increase their use of bank debt, supplier/consumer credits and equity financing.

Suggested Citation

  • Cristiana Tudor, 2010. "The Dynamics of Enterprise Financing in New EU Member. States in Comparative Perspective: the Aftermath of the Crisis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 13(37), pages 119-142, September.
  • Handle: RePEc:rej:journl:v:13:y:2010:i:37:p:119-142

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    Cited by:

    1. 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.

    More about this item


    financing sources; business constraints; crisis; Romania; Bulgaria;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid


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