The Asymmetrical Impact of Restrictions to Financing in Argentina. Comparison by Sector, Size and Origin of Ownership (1995-2003)

This paper analyzes the evolution and differential scope of restrictions to financing for the companies surveyed by the Large Companies Survey (ENGE) of the National Institute of Statistics and Census (INDEC) during the period 1995-2003. The main purpose of this study is to differentiate results not only according to the size of the company but also by activity sector and ownership. The study has shown, among other relevant findings, that the restriction to financing affected mainly smaller companies from the industrial sector and with majority of domestic shareholders. The financial structure of these companies presents a low level of leverage and exhibits a strong presence of financial liabilities, short-term debt, high implied interest rates, significant accumulation of liquid assets, an erratic or non-existing dividend policy and a sensitive proclivity to investment self-financing. In the other extreme, larger companies from the mining, extraction or service sectors (with a predominantly foreign ownership) seem to have been less affected by restrictions to financing.