Access to Bank Financing and New Investment: Evidence from Europe
Larry W. Chavis (),
Leora Klapper and
Inessa Love
Additional contact information
Larry W. Chavis: University of North Carolina at Chapel Hill
Chapter Chapter 7 in The Economics of Small Businesses, 2011, pp 115-132 from Springer
Abstract:
Abstract In this paper we study the relationship between firm age, the use of external finance and new investment decisions, in a sample of European firms. We find that younger firms use less bank financing than older firms only in non-EU countries, suggesting that greater financial development and a stronger investment climate offers young firms greater access to bank financing. Next, we show a link between a firm’s ability to obtain a loan and make new investments. Furthermore, we find that firms that report a need for credit, but did not apply for a loan, have the lowest incidence and amount of investment. Our results highlight the important role that the business environment can play in supporting wider access to external finance and greater private sector investment.
Keywords: Banking Sector; Full Time Employee; Trade Credit; Young Firm; External Finance (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (1)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:spr:conchp:978-3-7908-2623-4_7
Ordering information: This item can be ordered from
http://www.springer.com/9783790826234
DOI: 10.1007/978-3-7908-2623-4_7
Access Statistics for this chapter
More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().