IDEAS home Printed from
   My bibliography  Save this paper

What determines the decision to apply for credit? Evidence for Eurozone SMEs


  • Brian Lucey

    () (Institute for International Integration Studies, Trinity College Dublin)

  • Javier Sánchez-Vidal

    () (Universidad de Cartagena)

  • Ciaran MacAnBhaird

    () (FIONTAR, Dublin City University)

  • Constantin Gurdgiev

    () (Institute for International Integration Studies, Trinity College Dublin)


This study examines the decision by firm owners to apply, or not, for intermediated debt. Based on a sample of SMEs in 9 European countries over the period 2009-2012, we examine firm characteristics, institutional and cultural factors. We focus our analyses on two distinct groups of firms, those that applied for debt and firms that did not apply for fear of rejection. We find evidence that firm age, size and existing debt capacity matter, as do bank and liquidity conditions. We provide evidence for the first time that national culture correlates to the decisions to apply or not for credit. Policy implications of these findings are discussed, with an emphasis on the current ongoing economic crisis.

Suggested Citation

  • Brian Lucey & Javier Sánchez-Vidal & Ciaran MacAnBhaird & Constantin Gurdgiev, 2012. "What determines the decision to apply for credit? Evidence for Eurozone SMEs," The Institute for International Integration Studies Discussion Paper Series iiisdp415, IIIS.
  • Handle: RePEc:iis:dispap:iiisdp415

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Szabó, Zsolt, 2019. "Elbátortalanodott hiteligénylők a vállalati szektorban [Discouraged borrowers in the corporate sector]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1145-1186.
    2. Dirk Engel & Joel Stiebale, 2014. "Private equity, investment and financial constraints: firm-level evidence for France and the United Kingdom," Small Business Economics, Springer, vol. 43(1), pages 197-212, June.
    3. Drakos, Konstantinos & Giannakopoulos, Nicholas, 2018. "Self and bank credit rationing: a trivariate probit with double selection," Research in International Business and Finance, Elsevier, vol. 44(C), pages 124-134.

    More about this item


    Entrepreneurial finance; Discouraged borrowers; Intermediated debt; Financial crisis; Europe;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance


    Access and download statistics


    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:iis:dispap:iiisdp415. 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: (Maeve). General contact details of provider: .

    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 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.

    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.