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Financing obstacles and growth: an analysis for euro area non-financial firms


  • Chiara Coluzzi
  • Annalisa Ferrando
  • Carmen Martinez-Carrascal


This paper investigates the determinants of financing obstacles (FOs) and their impact on firm growth. For this purpose, we rely on both balance sheet data and survey data for a sample of non-financial firms in the euro area. The latter allows us to devise a direct measure of the firms' probability of facing FOs. First, our results indicate that FOs are linked to characteristics such as the age of the firm, its size, its sales level or the sector in which it operates. Second, we find that, though based on few variables, our measure of FOs appears to be relevant in explaining firm growth in four out of the five countries considered; likewise, growth is found to be positively linked to cash flow.

Suggested Citation

  • Chiara Coluzzi & Annalisa Ferrando & Carmen Martinez-Carrascal, 2015. "Financing obstacles and growth: an analysis for euro area non-financial firms," The European Journal of Finance, Taylor & Francis Journals, vol. 21(10-11), pages 773-790, August.
  • Handle: RePEc:taf:eurjfi:v:21:y:2015:i:10-11:p:773-790
    DOI: 10.1080/1351847X.2012.664154

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    1. repec:eee:riibaf:v:42:y:2017:i:c:p:208-223 is not listed on IDEAS
    2. repec:eee:jimfin:v:86:y:2018:i:c:p:112-130 is not listed on IDEAS
    3. Giorgio Calcagnini & Annalisa Ferrando & Germana Giombini, 2015. "Multiple market imperfections, firm profitability and investment," European Journal of Law and Economics, Springer, vol. 40(1), pages 95-120, August.
    4. Ioana A. Duca & José M. Montero & Marianna Riggi & Roberta Zizza, 2017. "I will survive. Pricing strategies of financially distressed firms," Temi di discussione (Economic working papers) 1106, Bank of Italy, Economic Research and International Relations Area.
    5. Gebauer, Stefan & Setzer, Ralph & Westphal, Andreas, 2018. "Corporate debt and investment: A firm-level analysis for stressed euro area countries," Journal of International Money and Finance, Elsevier, vol. 86(C), pages 112-130.
    6. Gómez, Miguel García-Posada, 2018. "Credit constraints, firm investment and growth: evidence from survey data," Working Paper Series 2126, European Central Bank.
    7. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    8. Ferrando, Annalisa & Marchica, Maria-Teresa & Mura, Roberto, 2014. "Financial flexibility across the euro area and the UK," Working Paper Series 1630, European Central Bank.
    9. Miguel García-Posada Gómez, 2018. "Credit constraints, firms investment and growth evidence from survey data," Working Papers 1808, Banco de España;Working Papers Homepage.
    10. Alexandra Moritz & Joern H. Block & Andreas Heinz, 2016. "Financing patterns of European SMEs -- an empirical taxonomy," Venture Capital, Taylor & Francis Journals, vol. 18(2), pages 115-148, April.
    11. Franziska Bremus & Katja Neugebauer, 2017. "Don't Stop Me Now: The Impact of Credit Market Fragmentation on Firms' Financing Constraints," Discussion Papers of DIW Berlin 1650, DIW Berlin, German Institute for Economic Research.
    12. repec:kap:sbusec:v:51:y:2018:i:1:d:10.1007_s11187-017-9918-y is not listed on IDEAS
    13. repec:eco:journ3:2017-04-18 is not listed on IDEAS
    14. José Manuel Montero, 2017. "Pricing decisions under financial frictions: evidence from the wdn survey," Working Papers 1724, Banco de España;Working Papers Homepage.
    15. Yavuz Arslan & Ahmet Degerli & Gazi Kabas, 2019. "Unintended Consequences of Unemployment Insurance Benefits: The Role of Banks," Swiss Finance Institute Research Paper Series 19-44, Swiss Finance Institute.

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