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The large majority of banks and savings institutions are small and community-based. But advances in information technology, new financial instruments, innovations in bank production processes, deregulation, and increased competition have created a less hospitable environment for community banks....
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SME investment opportunities depend on the level of financing constraints that firms face. Earlier research has mainly … focused on the controversial argument that cash flow-investment correlations increase with the level of these constraints. We … focus on bank loans rather than cash flow. Our results show that investment is sensitive to bank loans for unconstrained …
Persistent link: https://www.econbiz.de/10010292178
We investigate the effect of sovereign stress and of unconventional monetary policy on small firms’ financing patterns during the euro area debt crisis. We find that after the crisis started, firms in stressed countries were more likely to be credit rationed, both in the quantity and in the...
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SME investment opportunities depend on the level of financing constraints that firms face. Earlier research has mainly … focused on the controversial argument that cash flow-investment correlations increase with the level of these constraints. We … focus on bank loans rather than cash flow. Our results show that investment is sensitive to bank loans for unconstrained …
Persistent link: https://www.econbiz.de/10003774086
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