Credit Rationing, Survival and Firm Quality:A French Lesson
This study presents new findings on the factors determining SME survival and throws new light on the role of SME credit rationing in a large sample of French startups.Data consists of an unbalanced panel of 3,165 firms,3,162 closures and 16,187 firm-years,covering the period 1994-2000.For the first time in the literature credit rationing is explored controlling for firm quality.The main finding is that startup credit rationing exists and although affecting only around 7% of startups its impact on firm survival is long-lasting.Its effects are,however,mitigated by firm quality and availability of collateral.To quantify the former,a 10% increase in firm quality leads to a 28% decrease in the probability of startup credit rationing.Rationing at startup in turn increases the hazard ratio of closure by between 51% and 84% in each year for up to seven years from startup.Whilst the effects of rationing can be ameliorated by better capitalisation,higher profits,lower financial risk,greater human capital of the entrepreneur and industry factors none of these factors vary much through time.Plus ca change...
Entrepreneurship startups credit rationing survival France panel data hazard rate
Robert Cressy Jean Bonnet
Birmingham Business School, UK University of Caen, France
国际会议
杭州
英文
149-179
2012-10-13（万方平台首次上网日期，不代表论文的发表时间）