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Journals / World Journal of Applied Economics / 2020 / Cilt: 6 - Sayı: 1

Credit Rationing and Mature French SMEs: A Disequilibrium Model

Philippe Adair
Mohamed Adaskou
Pages
55–72
Publication Date
2022-11-06
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The aver- age share of rationed SMEs is seven per cent of the sample, suggesting that access to bank loans is not a major issue for mature French SMEs.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:A conventional assumption that deserves testing is that small and medium-sized en- terprises (SMEs) are most affected by credit crunch.
📊
Key Findings & Data:In this respect, a disequilibrium model is designed to analyse the determinants of credit rationing upon a balanced panel of 2,370 mature French SMEs over the period 2002-2010.
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Conclusion & Impact:The aver- age share of rationed SMEs is seven per cent of the sample, suggesting that access to bank loans is not a major issue for mature French SMEs.
🔬Design:Modeling & Simulation
📍Scope:2002-2010 Verileri
⚙️Variables:Domain Parameters

Abstract

A conventional assumption that deserves testing is that small and medium-sized en- terprises (SMEs) are most affected by credit crunch. In this respect, a disequilibrium model is designed to analyse the determinants of credit rationing upon a balanced panel of 2,370 mature French SMEs over the period 2002-2010. According to the esti- mates of simultaneous equations, the desired demand for bank credit is determined by exogenous factors from the supply-side. The credit supply-side validates best trade-off theory, whereas the credit demand-side validates best pecking order theory. The aver- age share of rationed SMEs is seven per cent of the sample, suggesting that access to bank loans is not a major issue for mature French SMEs.

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Cite This Article

Adair, P., Adaskou, M. (2022). Credit Rationing and Mature French SMEs: A Disequilibrium Model. World Journal of Applied Economics, Cilt: 6 - Sayı: 1, 55–72. https://ajindex.com/articles/646426

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References (5)

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