Financial globalization: A glass half empty?

Schmukler, Sergio L.; Abraham, Facundo

doi:10.4337/9781785360510.00020

Cited by 9 publications

(8 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Second, since the guarantor has a diversified portfolio, it diversifies the lender's risk due to geographic concentration (Honohan, 2010). Third, guarantees can provide credit opportunities for some borrowers excluded from credit due to lack of collateral, which is precisely faced by happens to innovative companies and SMEs (Abraham & Schmukler, 2017).…”

Section: Credit Rationing and Risk Sharingmentioning

confidence: 99%

Bank credit and corporate innovation investment: The role of government risk sharing

Lin

2023

Manage Decis Econ

View full text Add to dashboard Cite

This paper builds a difference-in-difference model (DID) to study the impact of government risk sharing policies on corporate innovation investment. High-tech firms are used as the experimental group to test the effect of policy shocks. It is shown that government risk sharing may ease financing constrains, which will increase corporate innovation investment. The results suggest that the effect of government risk-sharing policies on bank credit is short-run, while the effect on corporate innovation investment is more sustainable. In addition, the government risk-sharing ratio is inversely proportional to the loan rates and the success rate of innovation.

show abstract

Section: Credit Rationing and Risk Sharingmentioning

confidence: 99%

Bank credit and corporate innovation investment: The role of government risk sharing

Lin

2023

Manage Decis Econ

View full text Add to dashboard Cite

show abstract

“…Evidence suggests, however, that enforcement mechanisms are weak in many developing countries (Atiase et al ., 2018; Kuada, 2021). In some cases, lenders may substitute collateral requirements with third party guarantees, which can take the form of both public and private guarantees (Menkhoff et al ., 2012; Abraham and Schmukler, 2017). Guarantees play a significant part in substituting for collateral and may, in some cases, be more important than relationship lending (Menkhoff et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Constraints to formal small business performance in the service sector in Cameroon

Kabange

Simatele

2022

AJEMS

View full text Add to dashboard Cite

PurposeThis study aims to investigate whether social capital mediates the impact of financial capital on business performance in Cameroon.Design/methodology/approachThe study uses quantitative data collected from 370 small businesses in Yaoundé and Douala in Cameroon. All businesses in the sample are formally registered and are in the services sector. A structural equation modelling (SEM) approach is used for the analysis.FindingsStructural and relational capital constraints are significant mediators of formal and informal finance. The magnitude effects of relational capital are the largest, underlining information's importance in resolving small and medium enterprises’ (SMEs') financial constraints. In addition, the effect of informal finance constraints on business performance is larger in magnitude, confirming the substantial impact of informal finance on SME operations.Research limitations/implicationsThe paper confirms that relational and structural social capital are vital in business. However, the study did not investigate the disaggregated effects of these dimensions of social capital. Furthermore, how SMEs transition between formal and informal finance could provide further understanding of the role of social capital. A disaggregated and panel data set would help to provide additional insights.Practical implicationsSocial capital emerges as a pivotal factor in enhancing SME access to finance. The results, therefore, confirm the relevance of a holistic approach to easing financial capital constraints for SMEs and enabling small businesses to connect more to various stakeholders to amplify business performance. In addition, the findings identified some intervention points for the governments in Cameroon as it seeks to use SMEs as its pivot for development and to catapult itself to emerging economy status in its Cameroon 2035 vision.Originality/valueThe value of the study lies in assessing the mediating effect of cognitive, relational and structural social capital constraints on business performance and comparing the effect of formal and informal financial constraints on business performance.

show abstract

“…This paper focuses on quantifying the SME financing gap, i.e., the gap between demand and supply of external financing for SMEs across a number of European countries, across sectors and over time. In doing so, it builds on previous efforts at quantifying a financing gap, including Stein et al (2010) who estimate the global SME credit gap surpassing 2 trillion USD, Abraham and Schmukler (2017) and Ayyagari et al (2017) who follow up on these efforts, and Lopez-de Silanes et al (2018) who compute SME financing gaps for European countries.…”

Section: Introductionmentioning

confidence: 99%