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Is Bank Loan Funding to SMEs in North Africa a Matter of Size?

Author

Listed:
  • Philippe Adair

    (University Paris-Est Créteil-UPEC; ERUDITE Research Team)

  • Imène Berguiga

    (IHEC-University of Sousse; ERUDITE Research Team)

Abstract

The paper tackles the bank loan issue according to the size of 3,896 businesses, a sample from the World Bank Enterprises Survey conducted as of 2013 in Egypt, Morocco and Tunisia. First, the sample is adjusted with respect to international standards. Second, businesses that did not apply vs. those that did apply for a loan are investigated as regards corporate finance theory. Third, a logistic model addresses the demand and the supply of 1,020 businesses that applied for a loan. Characteristics of businesses -Size, Age, Registration and Financial inclusion influence loan demand, whereas Financial inclusion and Collateral influence loan supply.

Suggested Citation

  • Philippe Adair & Imène Berguiga, 2020. "Is Bank Loan Funding to SMEs in North Africa a Matter of Size?," Proceedings of Economics and Finance Conferences 10913130, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:iefpro:10913130
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    References listed on IDEAS

    as
    1. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
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    4. Roberta Gatti & Diego F. Angel-Urdinola & Joana Silva & Andras Bodor, 2014. "Striving for Better Jobs : The Challenge of Informality in the Middle East and North Africa," World Bank Publications - Books, The World Bank Group, number 19905, December.
    5. Rocha, Roberto & Farazi, Subika & Khouri, Rania & Pearce, Douglas, 2011. "The status of bank lending to SMES in the Middle East and North Africa region : the results of a joint survey of the Union of Arab Bank and the World Bank," Policy Research Working Paper Series 5607, The World Bank.
    6. Scott, James H, Jr, 1977. "Bankruptcy, Secured Debt, and Optimal Capital Structure," Journal of Finance, American Finance Association, vol. 32(1), pages 1-19, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bank loans; Corporate finance; Logistic regressions; North Africa; SMEs;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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