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Heterogeneity and state dependence in firms’ access to bank credit

This paper investigates firms’ access to bank credit in eleven euro area countries over the periods 2014–2019. Exploiting firm-level longitudinal data, we analyse loan demand and credit rationing probabilities, accounting for sample selection, unobserved heterogeneity and state dependence. Empirical...

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Detalles Bibliográficos
Autores principales: Aristei, David, Angori, Gabriele
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8530204/
http://dx.doi.org/10.1007/s11187-021-00545-x
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author Aristei, David
Angori, Gabriele
author_facet Aristei, David
Angori, Gabriele
author_sort Aristei, David
collection PubMed
description This paper investigates firms’ access to bank credit in eleven euro area countries over the periods 2014–2019. Exploiting firm-level longitudinal data, we analyse loan demand and credit rationing probabilities, accounting for sample selection, unobserved heterogeneity and state dependence. Empirical results show that small and informationally opaque businesses, with deteriorated public support and credit history, face greater difficulties in obtaining bank loans. Furthermore, we provide evidence of a significant degree of state dependence in access to credit. In particular, firms that have already experienced credit restrictions are more likely to face further constraints, while enterprises that applied for bank financing in the past seem to have easier access to credit. Focusing on the subset of firms actually needing additional bank financing, we also find that past credit restrictions significantly reduce their current demand, providing evidence of a significant discouragement effect. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s11187-021-00545-x.
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spelling pubmed-85302042021-10-22 Heterogeneity and state dependence in firms’ access to bank credit Aristei, David Angori, Gabriele Small Bus Econ Article This paper investigates firms’ access to bank credit in eleven euro area countries over the periods 2014–2019. Exploiting firm-level longitudinal data, we analyse loan demand and credit rationing probabilities, accounting for sample selection, unobserved heterogeneity and state dependence. Empirical results show that small and informationally opaque businesses, with deteriorated public support and credit history, face greater difficulties in obtaining bank loans. Furthermore, we provide evidence of a significant degree of state dependence in access to credit. In particular, firms that have already experienced credit restrictions are more likely to face further constraints, while enterprises that applied for bank financing in the past seem to have easier access to credit. Focusing on the subset of firms actually needing additional bank financing, we also find that past credit restrictions significantly reduce their current demand, providing evidence of a significant discouragement effect. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1007/s11187-021-00545-x. Springer US 2021-10-21 2022 /pmc/articles/PMC8530204/ http://dx.doi.org/10.1007/s11187-021-00545-x Text en © The Author(s) 2021, corrected publication 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) .
spellingShingle Article
Aristei, David
Angori, Gabriele
Heterogeneity and state dependence in firms’ access to bank credit
title Heterogeneity and state dependence in firms’ access to bank credit
title_full Heterogeneity and state dependence in firms’ access to bank credit
title_fullStr Heterogeneity and state dependence in firms’ access to bank credit
title_full_unstemmed Heterogeneity and state dependence in firms’ access to bank credit
title_short Heterogeneity and state dependence in firms’ access to bank credit
title_sort heterogeneity and state dependence in firms’ access to bank credit
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8530204/
http://dx.doi.org/10.1007/s11187-021-00545-x
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