Business credit information sharing and default risk of private firms

Dierkes, Maik; Erner, Carsten; Langer, Thomas; Nordén, Lars

doi:10.1016/j.jbankfin.2013.03.018

Cited by 72 publications

(21 citation statements)

References 45 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It suggests that older firms may need more financial assistance from the financial institutions to support their investment in projects. It is also possible that older firms are more confident about their possibility of getting a bank loan due to their past business track record and hence they are highly likely to apply for external finance which was also argued by Kirschemann (2016) and Dierkes et al (2013). We find that firms having audited financial statements (Audit) are more likely to apply for bank loans than the firms without audited financial statements are.…”

Section: Applied For External Financesupporting

confidence: 59%

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

Belás

Rahman

et al. 2017

View full text Add to dashboard Cite

This paper empirically investigates financial constraints experienced by innovative small and medium enterprises (SMEs) in the context of Visegrad countries: Czech Republic, Slovak Republic, Hungary, and Poland. At first, we examine whether innovative (product and process innovation) SMEs seek more external finance than the non-innovative firms and then we examine the likelihood of being successful with a loan application. This study uses the dataset from the Business Environment and Enterprise Performance Survey (BEEPS V), which was conducted by the World Bank and the European Bank for Reconstruction and Development (EBRD) during the period of 2012-2014. With respect to firm-level analysis, we find that innovative SMEs are likely to seek external finance to support their innovative ideas but the results are not statistically significant. We also did not find any evidence that innovative SMEs experience more credit constraints as compared to noninnovative firms. However, a country-level analysis suggests that firms in the Slovak Republic and Hungary are more likely to seek external finance for process and product innovation. Further, we find that mature firms, firms having audited financial statements, and risky borrowers are highly likely to apply for external finance while service-oriented firms are less likely to apply for bank finance. Finally, we find that loan application of the experienced borrowers and service firms are more likely to be accepted.

show abstract

Section: Applied For External Financesupporting

confidence: 59%

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

Belás

Rahman

et al. 2017

View full text Add to dashboard Cite

show abstract

“…Moro and Fink (2013) reported that banks play an essential role in financing firms, especially SMEs, since they have more difficulty accessing equity capital markets. The firms in the SME segment are small, they suffer from higher intensity of information asymmetry and have minimal internal cash flow (Dierkes et al, 2013). In this context, Fetisovová et al (2012) and other authors state that the access to external financial sources deteriorated during the crisis in the SME segment.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Important factors of financial risk in the SME segment

Belás¹,

Dvorský²,

Kubálek³

et al. 2018

Journal of International Studies

View full text Add to dashboard Cite

The aim of the article is to define and quantify the significant factors which influence the intensity of financial risk, and to compare the perception of financial risk among groups of entrepreneurs in the SME segment according to their motivations for starting a business. In relation with the aims defined under this research, we carried out a survey of the entrepreneurial environment of SMEs in 2015, using a sample of 1,141 respondents (the owners of the enterprises). We used Z-score and regression analysis to assess our hypotheses.

show abstract

“…It also argues that younger firms have a lower level of asset intensity and because of it they are credit rationed (Ferri and Murro, 2015). Similarly, banks are reluctant to lend money to younger firms, as it is found that survival rates of younger firms are lower than of older firms (Dierkes et al, 2013). Kirschemann (2016) in her study found out that younger firms are more likely to be credit rationed since they previously did not receive any loans from banks and as a result, it is difficult for banks to judge the loan repayment history.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

Determinants of SME Finance: Evidence from Three Central European Countries

Rahman

Belás

2017

Review of Economic Perspectives

View full text Add to dashboard Cite

This paper explores the determinants of access to finance for small and medium enterprises (SMEs) in the context of three Central European countries: Czech Republic, Slovak Republic, and Hungary. The data set of the research is obtained from the BEEPS survey, which is conducted by the World Bank and the European Bank for Reconstruction and Development. This paper empirically analyses firms not only from the SMEs point of view, but also shows results for micro, small and medium enterprises separately. Additionally, we have analysed the determinants of access to finance for SMEs at each country level for an in-depth understanding of country-level variations in SME financing. The results indicate that micro firms and firms owned and operated by women are experiencing a shortage of credits from banks. On the other hand, we found a positive relationship between the pledge of collateral and access to finance. With respect to the medium firms, we found evidence that innovative firms have a larger amount of credit from banks. The empirical results also suggest that the loan size increases as the interest rates increase in particular for SMEs on the whole and for micro-firms, although the interest rate is in a negative relationship with the loan size in Czech Republic.

show abstract

Business credit information sharing and default risk of private firms

Cited by 72 publications

References 45 publications

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

Important factors of financial risk in the SME segment

Determinants of SME Finance: Evidence from Three Central European Countries

Contact Info

Product

Resources

About