4,330
Views
10
CrossRef citations to date
0
Altmetric
Article

Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market

ORCID Icon
Pages 690-716 | Received 03 Dec 2016, Accepted 01 Feb 2019, Published online: 16 Apr 2019

References

  • Agostino, M., & Trivieri, F. (2017). Collateral in lending relationships. A study on European SMEs microdata. International Review of Applied Economics, 31(3), 339–356. doi:10.1080/02692171.2016.1257580
  • Akerlof, G. A. (1970). The market for lemons: Quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 84(3), 488–500. doi:10.2307/1879431
  • Akin, G. G., Aysan, A. F., & Yildiran, L. (2009). Transformation of the Turkish financial sector in the aftermath of the 2001 crisis. In Z. Onis & F. Senses (Eds.), Turkey and the global economy: Neo-liberal restructuring and integration in the post-crisis (pp. 73–100). New York, NY: Routledge.
  • Allison, P. D. (1999). Logistic regression using the SAS system: Theory and application. Cary, NC: SAS Institute.
  • Ang, J. S. (1992). On the theory of finance for privately held firms. Journal of Small Business Finance, 1(3), 185–203.
  • Angelini, P., Di Salvo, R., & Ferri, G. (1998). Availability and cost of credit for small businesses: Customer relationships and credit cooperatives. Journal of Banking and Finance, 22(6–8), 925–954. doi:10.1016/S0378-4266(98)00008-9
  • Bakiciol, T. (2017). The impact of durable relationship with banks when crisis hits. Emerging Markets Finance and Trade, 53(11), 2609–2624. doi:10.1080/1540496X.2017.1326027
  • Beck, T., Demirguc-Kunt, A., Laeven, L., & Maksimovic, V. (2006). The determinants of financing obstacles. Journal of International Money and Finance, 25(6), 932–952. doi:10.1016/j.jimonfin.2006.07.005
  • Beck, T., Demirguc-Kunt, A., & Maksimovic, V. (2008). Financing patterns around the world: Are small firms different?. Journal of Financial Economics, 89(3), 467–487. doi:10.1016/j.jfineco.2007.10.005
  • Berger, A. N., & Udell, G. F. (1995). Relationship lending and lines of credit in small firm finance. The Journal of Business, 68(3), 351–381. doi:10.1086/296668
  • Berger, A. N., & Udell, G. F. (1998). The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance, 22, 613–673.
  • Bernini, M., & Montagnoli, A. (2017). Competition and financial constraints: A two-sided story. Journal of International Money and Finance, 70, 88–109. doi:10.1016/j.jimonfin.2016.07.003
  • Bharath, S. T., Dahiya, S., Saunders, A., & Srinivasan, A. (2011). Lending relationships and loan contract terms. Review of Financial Studies, 24(4), 1141–1203. doi:10.1093/rfs/hhp064
  • Bhavani, T. A., & Bhanumurthy, N. R. (2014). Financial access – measurement and determinants: A case study of unorganised manufacturing enterprises in India. Indian Economic Review, 49(1), 85–108.
  • Binks, M. R., & Ennew, C. T. (1996). Growing firms and the credit constraint. Small Business Economics, 8(1), 17–25. doi:10.1007/BF00391972
  • Blumberg, B. F., & Letterie, W. A. (2004). Which business starters experience limited access to bank funds? In A.-K. Achleitner, H. Klandt, L.T. Koch & K.-I. Voigt (Eds), Jahrbuch entrepreneurship 2004/05 (pp. 173–193). Germany: Springer Verlag.
  • Blumberg, B. F., & Letterie, W. A. (2008). Business starters and credit rationing. Small Business Economics, 30(2), 187–200. doi:10.1007/s11187-006-9030-1
  • Bolton, P., Freixas, X., Gambacorta, L., & Mistrulli, P. E. (2016). Relationship and transaction lending in a crisis. Review of Financial Studies, 29(10), 2643–2676. doi:10.1093/rfs/hhw041
  • Bose, U., MacDonald, R., & Tsoukas, S. (2016). Policy initiatives and firms’ access to external finance: Evidence from a panel of emerging Asian economies. Journal of Corporate Finance. doi:10.1016/j.jcorpfin.2016.09.008
  • Bougheas, S., Mizen, P., & Yalcin, Y. (2006). Access to external finance: Theory and evidence on the impact of monetary policy and firm-specific characteristics. Journal of Banking and Finance, 30(1), 199–227. doi:10.1016/j.jbankfin.2005.01.002
  • Brown, J. R., Martinsson, G., & Petersen, B. C. (2012). Do financing constraints matter for R&D?. European Economic Review, 56, 1512–1529.
  • Brown, M., Ongena, S., Popov, A., & Yeşin, P. (2011). Who needs credit and who gets credit in Eastern Europe?. Economic Policy, 26(65), 93–130. doi:10.1111/j.1468-0327.2010.00259.x
  • Brown, R., & Lee, N. (2015). Credit where it’s due? Access to finance for high-growth SMEs in the UK. (Working Paper No. 15-001). Fife: Centre for Responsible Banking and Finance, University of St. Andrews.
  • BRSA (2009). From crisis to financial stability (Turkey experience) (Working Paper). Ankara, Turkey: BRSA
  • Brush, C. G., Ceru, D. J., & Blackburn, R. (2009). Pathways to entrepreneurial growth: The influence of management, marketing, and money. Business Horizons, 52(5), 481–491. doi:10.1016/j.bushor.2009.05.003
  • Bulow, J., & Shoven, J. (1978). The bankruptcy decision. Bell Journal of Economics, 9(2), 437–456. doi:10.2307/3003592
  • Canton, E., Grilo, I., Monteagudo, J., & van der Zwan, P. (2013). Perceived credit constraints in the European Union. Small Business Economics, 41(3), 701–715. doi:10.1007/s11187-012-9451-y
  • Carbo-Valverde, S., Rodriguez-Fernandez, F., & Udell, G. F. (2008). Bank lending, financing constraints and SME investment (Working Paper No. 2008-2004). Chicago, IL: Federal Reserve Bank of Chicago.
  • Carbo-Valverde, S., Rodriguez-Fernandez, F., & Udell, G. F. (2016). Trade credit, the financial crisis, and firm access to finance. Journal of Money, Credit and Banking, 48(1), 113–143. doi:10.1111/jmcb.12292
  • Carpenter, R. E., & Petersen, B. C. (2002). Capital market imperfections, high-tech investment, and new equity financing. The Economic Journal, 112(477), F54–F72. doi:10.1111/1468-0297.00683
  • Cenni, S., Monferra, S., Salotti, V., Sangiorgi, M., & Torluccio, G. (2015). Credit rationing and relationship lending. Does firm size matter?. Journal of Banking and Finance, 53, 249–265. doi:10.1016/j.jbankfin.2014.12.010
  • Chakravarty, S., & Xiang, M. (2013). The international evidence on discouraged small businesses. Journal of Empirical Finance, 20, 63–82. doi:10.1016/j.jempfin.2012.09.001
  • Chakravarty, S., & Yilmazer, T. (2009). A multistage model of loans and the role of relationships. Financial Management, 38(4), 781–816. doi:10.1111/j.1755-053X.2009.01056.x
  • Chang, C., Liao, G., Yu, X., & Ni, Z. (2014). Information from relationship lending: Evidence from loan defaults in China. Journal of Money, Credit and Banking, 46(6), 1225–1257. doi:10.1111/jmcb.12139
  • Cizre-Sakallioglu, U., & Yeldan, E. (2000). Politics, society and financial liberalization: Turkey in the 1990s. Development and Change, 31(2), 481–508. doi:10.1111/1467-7660.00163
  • Clarke, G. R. G., Cull, R., & Kisunko, G. (2012). External finance and firm survival in the aftermath of the crisis: Evidence from Eastern Europe and Central Asia. Journal of Comparative Economics, 40(3), 372–392.
  • Cole, R. A. (1998). The importance of relationships to the availability of credit. Journal of Banking and Finance, 22(6–8), 959–977. doi:10.1016/S0378-4266(98)00007-7
  • Cosh, A., Hughes, A., Bullock, A., & Milner, I. (2008). Financing UK small and medium sized enterprises: The 2007 survey. Retrieved from https://www.cbr.cam.ac.uk/fileadmin/user_upload/centre-for-business-research/downloads/researchprojects-output/sme-finance-report-final.pdf
  • Cotugno, M., Monferra, S., & Sampagnaro, G. (2013). Relationship lending, hierarchical distance and credit tightening: Evidence from the financial crisis. Journal of Banking and Finance, 37(5), 1372–1385. doi:10.1016/j.jbankfin.2012.07.026
  • Cowling, M., Liu, W., & Ledger, A. (2012). Small business financing in the UK before and during the current financial crisis. International Small Business Journal, 30(7), 778–800. doi:10.1177/0266242611435516
  • Cressy, R., & Alofsson, C. (1997). The financial condition of Swedish SMEs: Survey and research agenda. Small Business Economics, 9(2), 179–192.
  • De Bodt, E., Lobez, F., & Statnik, J. C. (2005). Credit rationing, customer relationship and the number of banks: An empirical analysis. European Financial Management, 11(2), 195–228.
  • Denizer, C. (1997). The effects of financial liberalization and new bank entry on market structure and competition in Turkey (Policy Research Working Paper No. 1839). Washington, D.C.: The World Bank.
  • Diamond, D. W. (1991). Monitoring and reputation: The choice between bank loans and directly placed debt. Journal of Political Economy, 99(4), 689–721. doi:10.1086/261775
  • Duygan-Bump, B., Levkov, A., & Montoriol-Garriga, J. (2015). Financing constraints and unemployment: Evidence from the great recession. Journal of Monetary Economics, 75, 89–105.
  • Erdogan, A. I. (2018). Factors affecting SME access to bank financing: An interview study with Turkish bankers. Small Enterprise Research, 25(1), 23–35. doi:10.1080/13215906.2018.1428911
  • European Commission. (2017). 2017 SBA factsheet. Turkey. Brussels: European Commission.
  • Ferrando, A., & Mulier, K. (2013). Firms’ financing constraints: Do perceptions match the actual situation? (Working Paper No. 1577). Frankfurt: European Central Bank.
  • Freel, M. (2007). Are small innovators credit rationed?. Small Business Economics, 28(1), 23–35. doi:10.1007/s11187-005-6058-6
  • Freel, M., Carter, S., Tagg, S., & Mason, C. (2012). The latent demand for bank debt: Characterizing “discouraged borrowers”. Small Business Economics, 38(4), 399–418. doi:10.1007/s11187-010-9283-6
  • Gertler, M. L. (1988). Financial structure and aggregate economic activity: An overview. Journal of Money, Credit, and Banking, 20(3), 559–588. doi:10.2307/1992535
  • Gou, Q., Huang, Y., & Xu, J. (2018). Does ownership matter in access to bank credit in China?. The European Journal of Finance, 24(16), 1409–1427. doi:10.1080/1351847X.2016.1190391
  • Gregory, B. T., Rutherford, M. W., Oswald, S., & Gardiner, L. (2005). An empirical investigation of the growth cycle of small firm financing. Journal of Small Business Management, 43(4), 382–392. doi:10.1111/j.1540-627X.2005.00143.x
  • Grossman, S. J., & Hart, O. D. (1983). An analysis of the principal-agent problem. Econometrica, 51(1), 7–45. doi:10.2307/1912246
  • Grünert, J., Norden, L., & Weber, M. (2005). The role of non-financial factors in internal credit ratings. Journal of Banking and Finance, 29(2), 509–531. doi:10.1016/j.jbankfin.2004.05.017
  • Hall, B. H., & Lerner, J. (2010). The financing of R&D and innovation. In B.H. Hall, & N. Rosenberg (Eds), Handbook of the economics of innovation (pp. 609–639). The Netherlands: Elsevier.
  • Hanedar, E. Y., Broccardo, E., & Bazzana, F. (2014). Collateral requirements of SMEs: The evidence from less-developed countries. Journal of Banking and Finance, 38, 106–121. doi:10.1016/j.jbankfin.2013.09.019
  • Hernandez-Canovas, G., & Martinez-Solano, P. (2010). Relationship lending and SME financing in the Continental European bank-based system. Small Business Economics, 34, 465–482.
  • Hill, M. D., Kelly, G. W., Preve, L. A., & Sarria-Allende, V. (2017). Trade credit or financial credit? An international study of the choice and its influences. Emerging Markets Finance and Trade, 53(10), 2318–2332. doi:10.1080/1540496X.2017.1319355
  • Holmström, B. (1979). Moral hazard and observability. Bell Journal of Economics, 10(1), 74–91.
  • Hözl, W. (2014). Persistence, survival and growth: A closer look at 20 years of fast growing firms in Austria. Industry and Corporate Change, 23(1), 199–231.
  • Hughes, A. (2009). Hunting the snark: Some reflections on the U.K. experience of support for the small business sector. Innovation: Management, Policy and Practice, 11(1), 114–126.
  • IMF (2017). Turkey: Financial system stability assessment. (Country Report No. 17/35). Washington, D.C.: IMF.
  • Jaffee, D. M., & Russell, T. (1976). Imperfect information, uncertainty, and credit rationing. Quarterly Journal of Economics, 90(4), 651–666. doi:10.2307/1885327
  • Jenkins, H., & Hossain, M. (2017). An analysis of the macroeconomic conditions required for SME Lending: Evidence from Turkey and other emerging market countries. Panoeconomicus, 64(1), 77–92. doi:10.2298/PAN140213008J
  • Jiangli, W., Unal, H., & Yom, C. (2008). Relationship lending, accounting disclosure, and credit availability during the Asian financial crisis. Journal of Money, Credit and Banking, 40(1), 25–55. doi:10.1111/j.1538-4616.2008.00103.x
  • Kaplan, S. N., & Zingales, L. (1997). Do investment-cash flow sensitivities provide useful measures of financing constraints? The Quarterly Journal of Economics, 112(1), 169–215. doi:10.1162/003355397555163
  • Keay, J. (2016). Europe rises to Turkey’s SME challenges. Global Finance. Retrieved from https://www.gfmag.com/magazine/december-2016/europe-rises-turkeys-sme-challenges
  • Kumar, A., & Francisco, M. (2005). Enterprise size, financing patterns and credit constraints in Brazil: Analysis of data from the Investment Climate Assessment Survey (Working paper No.49). Washington, D.C.: The World Bank.
  • Lee, N., & Drever, E. (2014). Do SMEs in deprived areas find it harder to access finance? Evidence from the UK Small Business Survey. Entrepreneurial and Regional Development, 26(3–4), 337–356. doi:10.1080/08985626.2014.911966
  • Lee, N., Sameen, H., & Cowling, M. (2015). Access to finance for innovative SMEs since the financial crisis. Research Policy, 44(2), 370–380. doi:10.1016/j.respol.2014.09.008
  • Levenson, A. R., & Willard, K. L. (2000). Do firms get the financing they want? Measuring credit rationing experienced by small businesses in the US. Small Business Economics, 14(2), 83–94.
  • Mac An Bhaird, C., Sanchez Vidal, J., & Lucey, B. (2016). Discouraged borrowers: Evidence for Eurozone SMEs. Journal of International Financial Markets, Institutions & Money, 44, 46–55. doi:10.1016/j.intfin.2016.04.009
  • Madrid-Guijarro, A., Garcia-Perez-de-Lema, D., & van Auken, H. (2016). Financing constraints and SME innovation during economic crises. Academia Revista Latinoamericana de Administración, 29(1), 84–106. doi:10.1108/ARLA-04-2015-0067
  • Menkhoff, L., Neuberger, D., & Rungruxsirivorn, O. (2012). Collateral and substitutes in emerging markets’ lending. Journal of Banking and Finance, 36(3), 817–834. doi:10.1016/j.jbankfin.2011.09.010
  • Menkhoff, L., Neuberger, D., & Suwanaporn, C. (2006). Collateral-based lending in emerging markets: Evidence from Thailand. Journal of Banking and Finance, 30(1), 1–21. doi:10.1016/j.jbankfin.2004.12.004
  • Mirrlees, J. (1975). The theory of moral hazard and unobservable behavior: Part I. Mimeo, Nuffield College, Oxford University. Published in 1999 in the Review of Economic Studies, 66(1), 3–21. doi:10.1111/1467-937X.00075
  • Moore, B. (1994). Financing constraints to the growth and development of small high technology firms. In Hughes, A. & D.J. Storey (Eds), Finance and the small firm (pp. 112–144). London: Routledge.
  • Nikaido, Y., Pais, J., & Sarma, M. (2015). What hinders and what enhances small enterprises’ access to formal credit in India? Review of Development Finance, 5(1), 43–52.
  • North, D., Baldock, R., & Ekanem, I. (2010). Is there a debt finance gap relating to Scottish SMEs? A demand-side perspective. Venture Capital, 12(3), 173–192. doi:10.1080/13691061003658670
  • OECD (2004). Small and Medium-Sized Enterprises in Turkey. Issues and Policies. Paris: OECD.
  • OECD (2006). The SME financing gap: Theory and evidence. Financial Market Trends, 2006(2), 87–97.
  • OECD (2016). Turkey policy brief: Entrepreneurship – Improving the framework conditions for small and medium-sized enterprises (OECD Better policies series). Paris: OECD.
  • OECD (2017). Enhancing the contributions of SMEs in a global and digitalised economy (Report). Paris: OECD.
  • Ortiz-Molina, H., & Penas, M. F. (2008). Lending to small businesses: The role of loan maturity in addressing information problems. Small Business Economics, 30(4), 361–383. doi:10.1007/s11187-007-9053-2
  • Ozatay, F., & Sak, G. (2002). Banking sector fragility and Turkey’s 2000–01 financial crisis. Brookings Trade Forum, 2002(1), 121–172. doi:10.1353/btf.2003.0008
  • Parker, S. C. (2004). The economics of self-employment and entrepreneurship, Cambridge: Cambridge University Press.
  • Parker, S. C., Storey, D. J., & van Witteloostuijn, A. (2010). What happens to gazelles: The importance of dynamic management strategy. Small Business Economics, 35(2), 203–226. doi:10.1007/s11187-009-9250-2
  • Petersen, M. A., & Rajan, R. G. (1994). The benefits of lending relationships: Evidence from small business data. The Journal of Finance, 49(1), 3–37. doi:10.2307/2329133
  • Pissarides, F. (1999). Is lack of funds the main obstacle to growth? EBRD’s experience with small- and medium-sized businesses in Central and Eastern Europe. Journal of Business Venturing, 14(5–6), 519–539. doi:10.1016/S0883-9026(98)00027-5
  • Ponikvar, N., Kejzar, K. Z., & Morec, B. (2013). Determinants of financial constraints: The effect of financial crisis and heterogeneity across industries. Economic Research-Ekonomska Istrazivanja, 26(sup1), 45–62. doi:10.1080/1331677X.2013.11517639
  • Presbitero, A. F., & Rabellotti, R. (2016). The determinants of firm access to credit in Latin America: Micro characteristics and market structure. Economic Notes, 45(3), 445–472. doi:10.1111/ecno.12069
  • Quartey, P., Turkson, E., Abor, J. Y., & Iddrisu, A. M. (2017). Financing the growth of SMEs in Africa: What are the constraints to SME financing within ECOWAS? Review of Development Finance, 7(1), 18–28. doi:10.1016/j.rdf.2017.03.001
  • Rahman, A., Belas, J., Kliestik, T., & Tyll, L. (2017). Collateral requirements for SME loans: Empirical evidence from the Visegrad countries. Journal of Business Economics and Management, 18(4), 650–675. doi:10.3846/16111699.2017.1357050
  • Ross, A. (1973). The economic theory of agency: The principal’s problems. American Economic Review, 63(2), 134–139.
  • Rothschild, M., & Stiglitz, J. E. (1976). Equilibrium in competitive insurance markets: An essay in the economics of imperfect information. The Quarterly Journal of Economics, 90(4), 629–649. doi:10.2307/1885326
  • Shen, Y., Shen, M., Xu, Z., & Bai, Y. (2009). Bank size and small- and medium-sized enterprise (SME) lending: Evidence from China. World Development, 37(4), 800–811. doi:10.1016/j.worlddev.2008.07.014
  • Silva, F., & Carreira, C. (2010). Financial constraints: Are there differences between manufacturing and services? (Working Paper No. 2010-16). Coimbra: GEMF, Faculty of Economics, University of Coimbra.
  • Spence, A. M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. doi:10.2307/1882010
  • Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71(3), 393–410.
  • Stiglitz, J. E., & Weiss, A. (1983). Incentive effects of termination: Application to the credit and labor markets. American Economic Review, 73(5), 912–927.
  • Van der Zwan, P. (2014). Bank loan application success by SMEs: The role of ownership structure and innovation. (Research Report No. H201404). Retrieved from http://ondernemerschap.panteia.nl/pdf-ez/h201404.pdf
  • Wang, Y. (2016). What are the biggest obstacles to growth of SMEs in developing countries? – An empirical evidence from an enterprise survey. Borsa Istanbul Review, 16(3), 167–176. doi:10.1016/j.bir.2016.06.001
  • Watson, J., & Everett, J. (1999). Small business failure rates: Choice of definition and industry effects. International Small Business Journal, 17(2), 31–47. doi:10.1177/0266242699172002
  • Westhead, P., & Storey, D. J. (1997). Financial constraints on the growth of high-technology small firms in the United Kingdom. Applied Financial Economics, 7(2), 197–201. doi:10.1080/096031097333763
  • Winker, P. (1999). Causes and effects of financing constraints at the firm level. Small Business Economics, 12(2), 169–181.
  • Wu, Z., & Chua, J. H. (2012). Second-order gender effects: The case of U.S. small business borrowing cost. Entrepreneurship Theory and Practice, 36(3), 443–463.
  • Yulek, M. A. (1998). Financial liberalization and the real economy: The Turkish experience. Ankara: Capital Markets Board of Turkey.