Access to external finance: Theory and evidence on the impact of monetary policy and firm-specific characteristics

Bougheas, Spiros; Mizen, Paul; Yalçın, Cihan

doi:10.1016/j.jbankfin.2005.01.002

Cited by 180 publications

(158 citation statements)

References 48 publications

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“…Their access to bank credit is worsened and this fact has an impact on their growth (Dong and Men, 2014). The relation between the age and the credit risk was proved in the studies of Bougheas et al (2006), Pickernell et al (2011 and Riding et al (2012). According to their results, younger entrepreneurs more intensively face the credit risk than older ones.…”

Section: Literature Reviewmentioning

confidence: 95%

“…They bring evidence that younger firms face the financial and credit risk more intensively than older and larger firms. The authors Lazányi (2014), Dong and Men (2014), Bougheas et al (2006), Pickernell et al (2011) and Riding et al (2012 present the opinion that younger entrepreneurs the credit risk and interest rate risk more intensively than older ones. Younger entrepreneurs pay higher interest rates because they are of a smaller firm size and their liquidity to pay in time is lower than of the older entrepreneurs.…”

Section: The Impact Of the Age On The Opinion That Smes In Other Eu Cmentioning

confidence: 99%

“…Their small size is according to such authors as Steinerowska-Streb and Steiner (2014), Irwin and Scott (2010), Mercieca et al (2009), Belás (2015b), Dong and Men (2014), Cheng, Tang and Shi (2012) often a reason why they more intensively face the financial risk and also the credit risk. Also Vos et al (2007), Bottazzi et al (2014), Lazányi (2014), Oliveira and Fortunato (2006), Dong and Men (2014), Hernández-Cánovas and Martínez-Solano (2010), Bougheas et al (2006), Pickernell et al (2011), Riding et al (2012) declare that the credit risk is higher in the group of younger entrepreneurs. The aim of this paper is to prove by the statistical method that the age of entrepreneurs (SMEs) should be considered as a relevant factor with the significant impact on the intense of credit risk in general, and its part -the risk of a change of the interest rate -in particular in Slovakia.…”

Section: Introductionmentioning

confidence: 99%

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The Relationship between the Risk of a Change of the Interest Rate and the Age of Entrepreneurs among Slovak SMEs

Majková¹

2016

JOC

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Young entrepreneurs and start-up founders are considered to be a drivers of innovation which is an important element of knowledge economy and competitiveness of each country. But their early age could be perceived as a factor causing the increasing impact of the credit risk because young entrepreneurs usually have a short company history, weak capital power and a lack of the guarantees. The main objective of this paper is to bring scientific evidence that the age of the entrepreneur should be considered as a factor with the significant impact on one part of the credit risk of a company-the risk of a change of the interest rate. The research was carried out among 438 Slovak companies in 2016. Based on Pearson´s chi-square analysis of the results of our research, we bring statistical evidence that age has a significant impact on the ability of the company to protect the firm against the change of the interest rate. We also found out that there is dependence between the age of the owner and the opinion that SMEs in the other EU countries have better loan conditions, especially lower interest rates, than Slovak SMEs. Research findings indicate that young entrepreneurs have problems with obtaining capital and increasing interest rates and collaterals because of their higher risk profile. But effective state support of young and innovative companies through venture financing can lead to increasing global competitiveness of the Slovak Republic.

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Section: Literature Reviewmentioning

confidence: 95%

Section: The Impact Of the Age On The Opinion That Smes In Other Eu Cmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Relationship between the Risk of a Change of the Interest Rate and the Age of Entrepreneurs among Slovak SMEs

Majková¹

2016

JOC

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“…The growth rate of patents is also limited due to the collateral constraint on the number of patents (11) and the ‡ow of funds equation (9). The solution of the optimization program of the entrepreneur is summarized in the following proposition: Proposition 1.…”

Section: Conditionmentioning

confidence: 99%

“…9 Proposition 2: Steady State Growth Regimes When condition 2 is not ful…lled, the free entry equilibrium prevails. The interest rate is equal to the return of R&D investment and there exists a unique steady state growth factor ( ) 1= .…”

Section: High Growth Of Innovations With Collateral Constraintsmentioning

confidence: 99%

Patents as collateral

Amable

Chatelain

Ralf

2010

Journal of Economic Dynamics and Control

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper studies how the assignment of patents as collateral determines the savings of …rms and magni…es the e¤ect of innovative rents on investment in research and development (R&D). We analyse the behaviour of innovative …rms that face random and lumpy investment opportunities in R&D. High growth rates of innovations, possibly higher than the real rate of interest, may be achieved despite …nancial constraints. There is an optimal level of publicly funded policy by the patent and trademark o¢ ce that minimizes the legal uncertainty surrounding patents as collateral and maximizes the growth rate of innovations. Terms of use: Documents in EconStor may

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A meta‐analysis of SMEs literature based on the survey on access to finance of enterprises of the European central bank

2020

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Small and Medium Enterprises (SMEs) are substantial contributors to employment and to the GDP growth in many countries. Therefore, understanding their difficulties to find appropriate financial resources are a key task for policy makers. Despite being a long-debated topic, there are still several gaps in the literature, probably due to the lack of empirical data. A relatively new database, the Survey of Access to Finance of Enterprises (SAFE) emerged after the subprime crisis. It is regularly conducted by the European Central Bank and can provide new information on SMEs financing. This paper conducts a metaanalysis of the literature based upon this survey, identifying key working hypothesis, methodologies and results.

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Access to external finance: Theory and evidence on the impact of monetary policy and firm-specific characteristics

Cited by 180 publications

References 48 publications

The Relationship between the Risk of a Change of the Interest Rate and the Age of Entrepreneurs among Slovak SMEs

The Relationship between the Risk of a Change of the Interest Rate and the Age of Entrepreneurs among Slovak SMEs

Patents as collateral

A meta‐analysis of SMEs literature based on the survey on access to finance of enterprises of the European central bank

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