Credit Reporting and Financing Constraints

By Inessa Love, Nataliya Mylenko. 2003

262 citations recorded by the source corpus.

The authors combine firm-level data from the World Bank Business Environment Survey (WBES) with data on private and public credit registries to investigate whether the presence of a credit registry in a country is associated with lower financing constraints, as perceived by managers, and with higher share of bank financing. They find that the existence of private credit registries is associated with lower financing constraints and higher share of bank financing, while the existence of public credit registries does not seem to have a significant effect on these perceived financing constraints. The authors also find that small- and medium-sized firms tend to have a higher share of bank financing in countries where private registries exist and stronger rule of law is associated with more effective private credit registries. Finally, the authors find some evidence that the presence of a public credit registry benefits younger firms relatively more than older firms.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/9a7230170f091f5f7160f9446cf993484cf76b2a

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Citations in the corpus

The Basic Analytics of Access to Financial Services (2006, background): “…more opaque firms are more financially constrained in economies with less developed financial and legal institutions and with less effective systems of credit information sharing (Beck, Demirguc-Kunt, and Maksimovic, 2005; Beck, Demirguc-Kunt, Laeven, and Maksimovic, 2006; Love and Mylenko, 2003).”
Finance, Financial Sector Policies, and Long-Run Growth (2008, background): “Firms also report lower financing obstacles with better credit information (Love and Mylenko, 2004).”
Bank Competition and Financial Stability : Friends or Foes? (2008, background): “Take the example of credit information sharing, which numerous studies have shown to be associated with better access to credit (Love and Mylenko, 2003 and Brown, Jappelli and Pagano, 2007), but also with better credit decisions by banks.”
A more complete conceptual framework for SME finance (2006, background): “Empirical evidence suggests a statistically important link between the existence of third-party information exchanges and credit availability (Pagano and Jappelli 1993, Padilla and Pagano 1997, Love and Mylenko 2003).”
Sharing information in the credit market: Contract-level evidence from U.S. firms (2013, background): “Love and Mylenko (2003) obtain that the presence of credit registers and bureaus in a country lowers the perceived incidence of financing constraints, with this effect being differentially stronger for small and young firms.4 While insightful, the analyses that employ aggregate data in…”
The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality (2019, background): “…has been focused on emerging economies in Asia and Latin America and on developed countries, while Africa has been documented to be a continent where financial development is lowest (Barth et al., 2009; Galindo & Miller, 2001; Love & Mylenko, 2003; Triki & Gajigo, 2014; World Bank, 2016).”
Corruption in bank lending to firms : cross-country micro evidence on the beneficial role of competition and information sharing (2009, background): “Using firm-level data, Love and Mylenko (2003) find that private bureaus are associated with lower perceived financial constraints.”
Financing the growth of SMEs in Africa: What are the contraints to SME financing within ECOWAS? (2017, background): “…disproportionally from higher levels of property rights rotection (see also Demirgüç-Kunt and Maksimovic, 1998). nvestigating creditor protection, Love and Mylenko (2003) find hat the presence of private credit registries in a country is assoiated with lower financing constraints and a higher…”
Information Asymmetry and Financial Development Dynamics in Africa (2016, unknown): “Love and Mylenko (2003) have combined firm-level data from the World Bank Business Environment Survey (WBES) with data on public and private credit registries to assess if, (i) from the perception of managers and (ii) higher sharing of financing from the bank, the existence of credit registries is…”
Information Sharing and Financial Sector Development in Africa (2017, methodology): “the World Bank Business Environment Survey has been used by Love and Mylenko (2000) to investigate two principal issues, notably whether: owing to reduced information asymmetry”
How Well do Institutional Theories Explain Firms' Perceptions of Property Rights? (2005, unknown): “In our more 4 The WBES has been used by Love and Mylenko (2003), Djankov, La Porta, Lopez-de-Silanes, and Shleifer (2003), Beck, Demirguc-Kunt and Maksimovic (2005), Beck, Demirguc-Kunt and Levine (2005), Beck, Demirguc-Kunt, Laeven and Maksimovic (2005) among others.”
How Bank Competition Affects Firms' Access to Finance (2012, unknown): “See, for example, Jappelli and Pagano (2002), Love and Mylenko (2005), Djankov et al. (2007), Brown et al. (2009), and Houston et al. (2010). environment where good credit information sharing schemes are in place, asymmetric information should be less of a concern for banks; hence, they will have…”