Sustainability and bank credit access: New evidence from Italian SMEs

D’Apolito, Elisabetta, Simona Galletta, Antonia Patrizia Iannuzzi and Stefania Sylos Labini

Research in International Business and Finance, 2024, vol. 69, issue C

Abstract: We test whether firm sustainability positively affects access to bank credit. We carry out a panel data analysis of 125 listed Italian SMEs across 14 regions over 2017–2021. A quantitative score comprising 20 items grouped into three areas, disclosure, processes, and governance, is computed to determine the level of implementation of sustainable practices of sampled SMEs. Results show that SMEs with more sustainable orientation have greater access to bank credit and better ability to pay the cost of bank debt. This, in turn, reinforces bank-SME relationships. We contribute to the literature on SMEs, highlighting the relationship between sustainability and the availability of bank loans.

Keywords: SMEs; Banks; Credit access; Bank debt; Business model; Sustainable development (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:69:y:2024:i:c:s0275531924000345

DOI: 10.1016/j.ribaf.2024.102242

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