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What determines the decision to apply for credit? Evidence for Eurozone SMEs
Mac an Bhaird, Ciarán; Sanchez-Vidal, Javier; Lucey, Brian; Gurdgiev, Constantin
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, along with time, industry and year variables. We focus our analyses in 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.
Keyword(s): Finance; Economic policy; Commerce; Entrepreneurial finance; Discouraged borrowers; Intermediated debt; Financial crisis; Europe
Publication Date:
Type: Other
Peer-Reviewed: Unknown
Language(s): English
Institution: Dublin City University
Citation(s): Mac an Bhaird, Ciarán ORCID: 0000-0003-2863-3398 <>, Sanchez-Vidal, Javier, Lucey, Brian and Gurdgiev, Constantin (2012) What determines the decision to apply for credit? Evidence for Eurozone SMEs. In: 35rd Conference of the Institute for Small Business and Entrepreneurship, 6-8 Nov 2012, Dublin, Ireland.
File Format(s): application/pdf
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First Indexed: 2014-04-17 05:44:00 Last Updated: 2019-02-09 06:38:28