TY - JOUR
T1 - Does firm size really affect the outcome of loan applications?
AU - Mallik, Girijasankar
AU - Nguyen, Duc Nguyen
AU - Chowdhury, Anis
PY - 2022
Y1 - 2022
N2 - Based on cross-country survey data comprising more than 100,000 firm-year observations across 139 countries, we use a multinomial logit model to investigate the determinants of firms’ access to finance and why “needy” firms are discouraged from applying for bank loans. We find that the relationship between applying for a loan and firm size is non-linear. Further, we document evidence that growing firms need and apply for funds up to a certain threshold and are less likely to be discouraged.
AB - Based on cross-country survey data comprising more than 100,000 firm-year observations across 139 countries, we use a multinomial logit model to investigate the determinants of firms’ access to finance and why “needy” firms are discouraged from applying for bank loans. We find that the relationship between applying for a loan and firm size is non-linear. Further, we document evidence that growing firms need and apply for funds up to a certain threshold and are less likely to be discouraged.
UR - https://hdl.handle.net/1959.7/uws:69947
U2 - 10.1016/j.eap.2022.04.004
DO - 10.1016/j.eap.2022.04.004
M3 - Article
SN - 0313-5926
VL - 74
SP - 806
EP - 820
JO - Economic Analysis and Policy
JF - Economic Analysis and Policy
ER -