Borrower discouragement prevalence for Eurozone SMEs: Investigating the impact of economic sentiment

Dimitris Anastasiou, Christos Kallandranis () and Konstantinos Drakos

Journal of Economic Behavior & Organization, 2022, vol. 194, issue C, 161-171

Abstract: We investigate whether economic sentiment exerts an impact on firms’ decision to apply for a bank loan or not and hence its impact on discouragement prevalence. Using survey data for Eurozone firms and employing a Probit Heckman selection model, we document that a positive shock in economic sentiment lowers the percentage of discouraged bank borrowers in the economy. In contrast, higher economic sentiment shock volatility leads to an increase in discouragement.

Keywords: Discouraged bank borrowers; Sentiment shock; Sentiment shock volatility; European SMEs; Heckman Selection; Uncertainty (search for similar items in EconPapers)
JEL-codes: C25 D81 D84 G10 G30 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268121005321
Full text for ScienceDirect subscribers only

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:eee:jeborg:v:194:y:2022:i:c:p:161-171

DOI: 10.1016/j.jebo.2021.12.022

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().