The determinants of financing obstacles

By Thorsten Beck, Asli Demirgüç-Kunt, Luc Laeven, Vojislav Maksimovic. 2004

1,069 citations recorded by the source corpus.

The authors use survey data on a sample of over 10,000 firms from 80 countries to assess (1) how successful a priori classifications are in distinguishing between financially constrained and unconstrained firms, and (2) more generally, the determinants of financing obstacles of firms. They find that older, larger, and foreign-owned firms report less financing obstacles. Their findings thus confirm the usefulness of size, age, and ownership as a priori classifications of financing constraints, while they shed doubts on other classifications used in the literature. Their results also suggest that institutional development is the most important country characteristic explaining cross-country variation in firms' financing obstacles.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/03d109607a4924be95a49c27c76c0382c6e4fab6

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Citations in the corpus

Measuring firms' access to finance (2006, methodology): “Beck et al. (2006) , using the World Business Environment Survey, which covers firms from 80”
The Dynamic Adjustment Towards Target Capital Structures of Firms in Transition Economies (2006, methodology): “Again, this is consistent with the literature (for example, Beck et al., 2005b; Fan et al., 2003; Rajan and Zingales, 1995).”
Perceived credit constraints in the European Union (2012, neutral): “…on surveys among firms is used in other studies also.4 One advantage of this type of approach is that it 4 Examples include Egeln et al. (1997) and Beck et al. (2006), although the firms are less directly asked about loan accessibility than in this study. enables us to include a large group of…”
Small and medium enterprises : a cross-country analysis with a new data set (2011, background): “This is evidenced in the works of Scholtens (1999), Schiffer and Weder (2001), Galindo and Schiantarelli (2003), IADB (2004), Beck et al. (2006), and Beck and Demirgüç-Kunt (2006).3 In particular, Beck et al. (2008a) conclude that smaller firms and firms in countries with underdeveloped financial…”
Export behaviour of SMEs in transition countries (2013, background): “Moreover, SMEs face greater difficulties in obtaining external finance (due to information asymmetries and/or institutional factors), which may be reflected in their overall performance, including international activities (Beck et al. 2006, 2008; Hutchinson and Xavier 2006).”
NO DEEP POCKETS: SOME STYLIZED EMPIRICAL RESULTS ON FIRMS' FINANCIAL CONSTRAINTS (2010, neutral): “Finally, Beck et al. (2006), using a firm-level survey conducted in 1999 and 2000 over 80 countries, find that domestic firms report higher financing obstacles.”
Bank Financing for SMEs: Evidence Across Countries and Bank Ownership Types (2009, background): “Furthermore, studies using firm-level data show that these factors disproportionally affect SMEs’ access to external financing and growth (see Beck et al., 2005, 2006, 2008).”
Bank lending constraints, trade credit and alternative financing during the financial crisis: Evidence from European SMEs (2014, background): “We focus on three specific firm characteristics that are listed as important determinants of SME financing in the literature: firm age, size and ownership (Beck et al., 2006).”
Finance for renewable energy: an empirical analysis of developing and transition economies (2010, neutral): “In less developed economies, the banking sector is the major source of external financing (Tadesse, 2002; Carlin and Mayer, 2003; Beck et al., 2004b), and access to bank credit is a serious problem especially for small- and medium-sized companies (Beck et al., 2004a).”