Access to long-term credit and productivity of small and medium firms: A causal evidence

Cavalcanti, Tiago; Vaz, Paulo

doi:10.1016/j.econlet.2016.10.043

Cited by 31 publications

(23 citation statements)

References 3 publications

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“…A large literature is interested in the link between finance and firm productivity. For instance, see Schiantarelli & Sembenelli (1997), Gatti & Love (2008) Levine & Warusawitharana (2014), and recent papers by Duval et al (2017), Dörr et al (2018), Cavalcanti & Vaz (2017), and Mian et al (2017). Huber (2018) and Franklin et al (2015) are closer to our paper and examine the impact of the lending contraction of German and UK banks and present results on labor productivity.…”

Section: Introductionmentioning

confidence: 51%

Credit Supply and Productivity Growth

Manaresi

Pierri²

2019

IMF Working Papers

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We study the impact of bank credit on firm productivity. We exploit a matched firm-bank database covering all the credit relationships of Italian corporations, together with a natural experiment, to measure idiosyncratic supply-side shocks to credit availability and to estimate a production model augmented with financial frictions. We find that a contraction in credit supply causes a reduction of firm TFP growth and also harms IT-adoption, innovation, exporting, and adoption of superior management practices, while a credit expansion has limited impact. Quantitatively, the credit contraction between 2007 and 2009 accounts for about a quarter of observed the decline in TFP.

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Section: Introductionmentioning

confidence: 51%

Credit Supply and Productivity Growth

Manaresi

Pierri²

2019

IMF Working Papers

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“…Finally, De Bolle (2015) finds some evidence that BNDES lending is associated with lower aggregate TFP. However, Cavalcanti and Vaz (2017) find that eligibility and access to better BNDES loan conditions is associated with higher investment and productivity rates for small firms.…”

Section: Economic Additionality Of Bndes Financingmentioning

confidence: 79%

Efficient Financial Allocation and Productivity Growth in Brazil

Calice¹,

Ribeiro²,

Byskov³

2018

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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“…There is an extensive literature that investigates the effects of the BNDES action in several aspects. Cavalcanti and Vaz (2017) analyzed the effects of subsidized credit provided by BNDES on the investment and performance of small and medium-sized enterprises. Oliveira (2019) estimated the effect on the investments of private and public companies of different sizes in Brazil, taking into account financial restrictions and BNDES financing.…”

Section: Development Banksmentioning

confidence: 99%

The Impact of BNDES’s Financial Resources on the Market Value of B3-Listed Companies

Simões¹,

Souza

Mello

et al. 2021

CGG

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Objective: Analyze whether Brazilian Development Bank (BNDES) financial support have increased Brazilian companies market value using a sample comprising 272 observations from 40 companies listed at B3 Stock Exchange, in 2003–2018.Method: Panel data analysis using the One-step system GMM and a non-parametric Kruskal-Wallis H test followed by a Dunn test.Relevance: The relevance of the current study is in its analysis of a possible association between BNDES-granted financing and changes in Brazilian companies’ market value.Results: We did not observe that the financial support from BNDES could be associated with an increase in the market value of the companies. It was not possible to establish a causal relationship with respect to the financial support of BNDES and an impact on the corporate market value when we analyzed our full sample. However, we observe the existence of difference in the averages of the corporate market value when we analyzed in groups of companies. This result is not in line with recent financial scandals in Brazil involving companies that had obtained BNDES funding.Theoretical Contributions: Our findings may assist in the elaboration of an efficient policy to finance Brazilian companies, as the analysis of BNDES performance is fundamental to determining whether the applicability of Brazilian financing policy has reached the proposed results.

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Access to long-term credit and productivity of small and medium firms: A causal evidence

Cited by 31 publications

References 3 publications

Credit Supply and Productivity Growth

Credit Supply and Productivity Growth

Efficient Financial Allocation and Productivity Growth in Brazil

The Impact of BNDES’s Financial Resources on the Market Value of B3-Listed Companies

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