| By: |
Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw);
Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: |
A Comparative Analysis of EU-15 and NMS-13 Countries This paper analyses bank
credits and trade loans as the two most important sources of external finance
of firms and identifies particular firm and country characteristics that
determine the ease with which both external funding sources can be accessed.
It focuses on SMEs in EU Member States and uses ECB/EU SAFE microdata, which
differentiate between various degrees of external funding constraints. The
results show that innovators of both products and processes have a harder time
raising sufficient funds from banks. Further, smaller and younger firms and
firms that are part of an enterprise are more likely to face stronger
obstacles from banks. Moreover, it points to the important role previous bank
loan and trade credit histories plays for successful application processes and
demonstrates that banks and suppliers respond asymmetrically to changes in a
firm’s financial and economic situation. Finally, it points to the importance
of the state and structure of a country’s banking sector for successful bank
loan and trade credit application processes. |
| Keywords: |
funding obstacles, bank loans, trade credits, small and medium-sized enterprises |
| JEL: |
G21 G23 O16 |
| Date: |
2015–05 |
| URL: |
http://d.repec.org/n?u=RePEc:wii:wpaper:114&r=cfn |