I estimate the effect micro firms' size and productivity have on the probability of becoming a discouraged borrower: firms that do not use credit from the formal financial system despite needing it. I also estimate the effect that size and productivity have on the probability of becoming...

The credit gap in this study is given by the financing needs of firms that are bankable but discouraged from applying for a loan. To quantify the credit gap, we combine a scoring model that assesses the creditworthiness of discouraged firms with a credit allocation rule. Our study covers 35...

This study aims to examine the effect of application costs, trust reciprocity, and self-efficacy on discouraged borrowers and the role of gender as a moderating variable. Our sample was 356 micro, small, and medium enterprise actors in the manufacturing industry in Central Java Province,...

A f irm’s distress r isk can be decomposed into two components: 1) the probability of default on its loan obligations (the likelihood of default) and 2) the amount recovered by bondholders when the firm is in default (the recovery rate).1,2 The goal of this article is to estimate an ex ante...

We present a simple theory and an empirical test for state dependence in firm access to credit. We estimate a first-order Markov model of credit restriction with sample selection that makes it possible to estimate state dependence in the presence of feedback effects and observed and unobserved...

Loan refusal has been a problem facing many loan applicants at the household level and this problem is not new to loan applicants in Ghana. Despite this knowledge, researchers passively discuss loan refusal and do not consider the intensity of this problem. This study analyses the effect of...

Purpose – The purpose of this paper is to test whether Australian female and male entrepreneurs differ in their growth aspirations and demand for finance; denial, discouragement and financial constraint rates; and sources of finance. Design/methodology/approach – This paper applies logistic...