Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data

Antônio Marcos Hoelz Pinto Ambrozio, Filipe Lage de Sousa, João Paulo Martin Faleiros and André Albuquerque Sant'Anna
Additional contact information
Antônio Marcos Hoelz Pinto Ambrozio: Pontifícia Universidade Católica (PUC-RJ)
Filipe Lage de Sousa: Universidade Federal Fluminese (UFF)
João Paulo Martin Faleiros: Brazilian Development Bank (BNDES)

Economia, 2017, vol. 17, issue 1, 73_87

Abstract: The aim of this paper is to investigate whether Brazilian manufacturing firms are credit constrained. We exploit a rich database that contains more than three thousand firms with characteristics that may affect their degree of credit constraint: 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 investment to cash flow. Large firms, stock market listed firms as well as firms with better export capacity are associated with inexistence or less credit restriction. Specifically, considering firms' size, our results corroborate the economic theory prediction and empirical international literature. Furthermore, the influence 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 constrained when listed in the stock market or when the exports-sales ratio is higher

Keywords: Credit constraint; Firms' investment; Cash flow; Exports; Stock market (search for similar items in EconPapers)
JEL-codes: C23 D21 D92 E22 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1517758016300273 (text/html)
http://ac.els-cdn.com/S1517758016301412/1-s2.0-S15 ... 848f95aaf35b8176ec2a (application/pdf)

Related works:
Working Paper: CREDIT SCARCITY IN DEVELOPING COUNTRIES: AN EMPIRICAL INVESTIGATION USING BRAZILIAN FIRM-LEVEL DATA (2016)
Working Paper: Credit Scarcity in Developing Countries: an Empirical Investigation using Brazilian Firm-Level Data
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:anp:econom:v:18:y:2017:1:73_87

Ordering information: This journal article can be ordered from
Secretaria da ANPEC Rua Prof Marcos Valdemar de Freitas Reis s/n Campus do Campus do Gragoatá, Bloco F Niterói, RJ 24210-201 Brazil
http://www.anpec.org.br/revista/

Access Statistics for this article

Economia is currently edited by Joaquim Pinto de Andrade

More articles in Economia from ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics] Secretaria da ANPEC Rua Prof Marcos Valdemar de Freitas Reis s/n Campus do Campus do Gragoatá, Bloco F Niterói, RJ 24210-201 Brazil. Contact information at EDIRC.
Bibliographic data for series maintained by Rodrigo Zadra Armond ().