Credit Scarcity in Developing Countries: an Empirical Investigation using Brazilian Firm-Level Data

André Albuquerque de Sant’Anna (), Antônio Marcos Hoelz Pinto Ambrozio (), Filipe Lage de Sousa () and João Paulo Martin Faleiros ()
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André Albuquerque de Sant’Anna: Brazilian Development Bank
Antônio Marcos Hoelz Pinto Ambrozio: Brazilian Development Bank
Filipe Lage de Sousa: Brazilian Development Bank
João Paulo Martin Faleiros: Brazilian Development Bank
Authors registered in the RePEc Author Service: André Albuquerque Sant'Anna

No 372, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: The aim of this paper is investigating whether Brazilian industrial firms are credit constraint. We exploit a rich database that contains more than 3.000 firms with characteristics that may affect their degree of credit constraints: size, being listed in the Brazilian stock market and level of exports-sales ratio. Our results show that all dimensions considered here may affect the sensitiveness of in-vestment to cash flow, i.e., large firms, stock market listed companies as well as large export capac-ity are associated with inexistence or less credit restriction. Specifically, considering firm’s size, our results corroborate the economic theory prediction and empirical international literature. However, when compared to Brazilian studies, our findings are similar to Terra (2003), however, they differ from Aldrighi and Bisinha (2010) evidences that are based only on listed firms. Furthermore, the in-fluence of being listed in the stock market and export capacity is beyond any possible correlation with size. Even small and middle firms are not credit constraint when listed in the stock market or when the exports-sales ratio is higher.

Keywords: Credit Constraint; Firm’s Investment; Cash Flow; Exports; Stock Market (search for similar items in EconPapers)
JEL-codes: D92 E22 (search for similar items in EconPapers)
Pages: 20
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-mac
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Related works:
Journal Article: Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data (2017)
Working Paper: CREDIT SCARCITY IN DEVELOPING COUNTRIES: AN EMPIRICAL INVESTIGATION USING BRAZILIAN FIRM-LEVEL DATA (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:372

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