Suitable or non-suitable? An investigation of Eurozone SME access to market-based finance

Emanuele Rossi, Paola Bongini, Annalisa Ferrando and Monica Rossolini

No 12006, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The present paper provides in–depth analysis of SME access to capital markets among Eurozone countries. First, we detect the factors – at the firm and country level – that are able to influence the likelihood of SME access to market-based finance. Second, we construct an index of what we call “market suitability†, i.e., a score that can be measured at the dimensional, sectoral and national level, which provides the percentage of firms potentially fit for market-based finance. Our results highlight that a few Eurozone countries seem to have deployed the “potential†for capital market financing, while there exists a large percentage of unexploited potential for firms fit for market-based finance. It should also be highlighted that overall business conditions - measured by GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system - greatly influence a firm’s market suitability. In the period under consideration (2000-2014), macro factors tended to reduce the likelihood of SME access to market-based finance in most countries in our sample

Keywords: Market-based finance; Smes; Eurozone (search for similar items in EconPapers)
JEL-codes: G10 G32 L25 L26 (search for similar items in EconPapers)
Date: 2017-04
New Economics Papers: this item is included in nep-cfn, nep-eec, nep-ent and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP12006 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12006

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP12006

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().