Credit Quality and Substitution in SME Finance
View/ Open
Metadata
Show full item recordcomunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8648
comunitat-uji-handle3:10234/8649
comunitat-uji-handle4:
INVESTIGACIONMetadata
Title
Credit Quality and Substitution in SME FinanceDate
2021-09-02Publisher
World Scientific PublishingISSN
2282-717XBibliographic citation
Norden, L., Van Kampen, S., & Illueca, M. (2021). Credit Quality And Substitution In Sme Finance. Journal of Financial Management, Markets and Institutions, 9(01), 2150005.Type
info:eu-repo/semantics/articleVersion
info:eu-repo/semantics/publishedVersionSubject
Abstract
We investigate whether and how SMEs’ credit quality influences their substitution of bank credit for trade credit. Using data from the five largest European countries, we find that substitution of bank credit for trade ... [+]
We investigate whether and how SMEs’ credit quality influences their substitution of bank credit for trade credit. Using data from the five largest European countries, we find that substitution of bank credit for trade credit decreases during the financial crisis, but it decreases significantly less for ex ante low credit quality firms. We control for pre-crisis or lagged firm characteristics including size and external finance dependence, industry effects, sample selection effects and cross-country heterogeneity. We also find that low credit quality firms increase their absolute and relative trade credit usage significantly more than high credit quality firms during the financial crisis. The effects are consistent across countries and stronger for net trade credit borrowers and financially constrained firms. The evidence highlights how credit quality influences demand-side driven substitution in SME finance. [-]
Is part of
Journal of Financial Management, Markets and InstitutionsVol. 09, No. 01, 2150005 (2021)Rights
©The Author(s)
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess
This item appears in the folowing collection(s)
- COFIN_Articles [218]