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This paper investigates whether financial obstacles, and, more generally, financial pressure faced by firms, significantly affect firm growth. For this purpose, we use an unbalanced panel of about 1,000,000 observations for around 155,000 non-financial corporations in five euro area countries....
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credit rationed, both in the quantity and in the price dimension, and to increase their use of debt securities. We also find … share of credit rationed firms and of firms discouraged from applying. In addition, firms reduced their use of debt … securities, trade credit, and government subsidized loans. Firms with improved outlook and credit history were particularly …
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