Bank debt and trade credit for SMEs in Europe: firm-, industry-, and country-level determinants

Leiden Repository

Bank debt and trade credit for SMEs in Europe: firm-, industry-, and country-level determinants

Type: Article / Letter to editor
Title: Bank debt and trade credit for SMEs in Europe: firm-, industry-, and country-level determinants
Author: Andrieu, G.Staglianò, R.Zwan, P.W. van der
Journal Title: Small Business Economics
Issue: 1
Volume: 51
Start Page: 245
End Page: 264
Pages: 20
Issue Date: 2018
Abstract: This paper examines differences in the ability to obtain capital—bank loans and trade credit—between firms, industries, and countries using survey data on European small and medium-sized enterprises (SMEs) from 2009 to 2014. The results show that firm age and firm size are positively linked to SMEs’ access to bank loans, but only firm size is positively related to the provision of trade credit. The results also provide em- pirical support for a complementary rather than a sub- stitutive effect between bank loans and trade credit. Manufacturing SMEs have a significantly higher likeli- hood of receiving bank loans and trade credit than non- manufacturing SMEs. We find differences across coun- tries in terms of the relevance of firm age and firm size for obtaining capital. In addition, we point at specific country-level variables that explain why obtaining credit is easier in some countries. We perform additional anal- yses to confirm our baseline results and provide direc- tions for future research.
Handle: http://hdl.handle.net/1887/63476
 

Files in this item

Description Size View
application/pdf Andrieu2018_Article_BankDebtAndTradeCreditForSMEsI 1.459Mb View/Open Full text at publisher site

This item appears in the following Collection(s)