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Credit Rationing and the Permanent Income Hypothesis Credit Rationing and the Permanent Income Hypothesis
Vicente Madrigal,Tommy Tan,Daniel Vicent,Sergio Ribeiro da Costa Werlang
Revista de Análisis Económico (RAE) , 1993,
Abstract: We model endogenous credit rationing and its effects on aggregate consumption behavior. We explain two important empirical paradoxes of the consumption literature. First, it is possible that some configurations of income/consumption streams be such that an outside observer could estimate a marginal propensity to consume greater than one. Second, if one tried to estimate an intertemporal substitution model disregarding credit constraints, it might result in a nonconcave utility function, even when consumers utility functions are concave. Credit Rationing and the Permanent Income Hypothesis
Domingo García-Pérez-de-Lema,Antonio Duréndez,Teresa Mari?o
Economics and Finance Review , 2011,
Abstract: In order to alleviate the problem of credit rationing family firms can face and provide additional financing sources to bank credit. MAB is an attractive market for young and growing companies, as well as for guaranteeing the survival of older firms. However, the MAB has not achieved broad acceptance in the case of Spanish firms. With this purpose, we compare, through a survey, financing preferences and different attitudes regarding the Alternative Stock Exchange Market for small and start-up companies. We carried out a crosssectional empiric study with a sample of 102 firms. Results indicate that the most important advantages to go public in the case of family firms follow this order: 1o get access to an alternative financing source and avoiding credit rationing; 2o guarantee the survival of the firm; 3o providing liquidity and 4o diversifying risks. Regarding the main barriers, family firms show the following order: 1o Resistance to change of owner-managers and 2o internal factors in relation to the lack of specific skills. Besides, results also pointed out there are differences when comparing the preferences of family firms and non-family firms regarding these advantages and barriers of going public. We expect our results to be useful for family firms’ entrepreneurs, in the sense they should be aware of a new Stock Exchange Market (MAB) designed to accomplish with their specificities, knowing their main advantages and barriers. In that sense, family firms should face key issues such as succession process, internationalization, professionalization, taking into account a new strategic alternative decision. We also expect the results of the study help policy makers to drive their efforts in continually making easy the progress of family firms, because they are main contributors to welfare and well-being of developed economies.
Quantity versus Price Rationing of Credit: An Empirical Test  [PDF]
George A. Waters
International Journal of Financial Studies , 2013, DOI: 10.3390/ijfs1030045
Abstract: One proxy of price rationing of credit is an aggregation of information on interest rates, while loan officer survey data measures quantity rationing of credit, meaning some borrowers are denied loans. The latter Granger causes real GDP but the former does not. The loan officer survey is a better leading indicator of credit market conditions that affect real activity.
Rural Household’s Risk Attitude and Credit Rationing: The Case of Chongqing in China  [PDF]
Xinjun Pang, Yunwu Kuang, Xiaohong Gong
American Journal of Industrial and Business Management (AJIBM) , 2014, DOI: 10.4236/ajibm.2014.412079
Abstract: This paper identifies farmers’ risk attitude through ELCE method and problem design that conducts a survey of 237 rural households in Chongqing Municipality, and empirically studies the relationship between risk attitudes and credit rationing by utilizing Probit and Logit model. The results show that farmers’ risk attitude and credit rationing are a significant positive correlation. The stronger farmers’ risk aversion is, the more serious the demanded credit rationing becomes. Risk attitude which is determined the risk cost and risk premium, thus affects the credit behavior and credit rationing degree. In addition, distance of peasant’s residence away from the city and their land amount have a positive significant influence on credit rationing, while the factors, such as farmers’ education level, income, family labor force, have a negative significant effect on credit rationing. Based on these findings, the paper further analyzes the relationship between farmers’ credit using and credit rationing to farmers with different risk attitudes. Measures to relieve the farmer’s credit rationing must be taken from government, financial institutions and farmers respectively.
The Cost of Bank Credit Financing
Mihaela Cosmina Petre (Ni??)
Acta Universitatis Danubius : Oeconomica , 2007,
Abstract: Although the credit is a conventional financing method used by any company, this tool is by far a very significant issue. The range ofcredits, that a bank provides, and the current policy customize this tool in order to meet the typical financing needs of the enterprises that demands it.Considering the risks, the bank takes the charge of by placing credits, the “eligibility” terms of enterprises that can get such financing being verystrict. Restrictions concerning the accepted degree of liability, the accomplished level of performance or available warranties may represent real“barriers” for many companies. Of all “barriers”, the high cost of some financing tools is a good case in point. In order to have a clearer picture ofwhat this financing source is for an enterprise, I have carried out a cost analysis of these financing tools, the medium and long term credit cost andthe short term credit cost.
Credit rationing and SME development in Botswana: Implications for economic diversification
FN Okurut, Y Olalekan, K Mangadi
Botswana Journal of Economics , 2011,
Abstract: Economic diversification is a key policy goal for the Government of Botswana. SMEs offer a feasible option towards the actualisation of this goal. The expansion of SMEs in Botswana however is constrained by lack of access to bank credit. This constrained access to credit is argued in the literature to be due to the credit rationing behaviour of banks emanating from asymmetric information in credit markets. Constrained access to credit stifles the growth potential of this vibrant sector which is increasingly generating employment opportunities especially for women (CSO, 2007). This study therefore investigated the factors that influence the credit rationing behaviour of banks towards SMEs using 2007 Informal Sector Survey data collected by Central Statistics Office and supplemented by our own survey of SMEs from the major cities/towns in Botswana on the demand side, and key informant discussions with the banks on the supply side. Heckman Probit Model with sample selection was used to estimate the determinants of the probability of SMEs being credit rationed by banks. The study findings suggest that the experience of SMEs reduces their probability of being credit rationed by banks. From the bank perspective the experience of SMEs is determined from their ability to keep proper financial statements, the performance of their bank accounts with the banks, and their ability to make profits. This calls for capacity building of SMEs in areas of business management (including financial record keeping) if they are to be rated as credit worthy borrowers by the banks. From the SMEs perspective, there is need for banks to improve their efficiency in terms of reduction of loan processing time and cost of borrowing (i.e. interest rate). This will improve access to bank credit by the SMEs and promote their growth thereby stimulating economic diversification, employment creation opportunities, increase household incomes, and contributing to poverty reduction in line with Botswana’s Vision 2016. Key Words: Economic Diversification, Credit Rationing, Botswana
Credit Rationing and Influencing Factors of Chinese Rural Households

- , 2017,
Abstract: 根据陕西省324户农户的实际调查数据,对信贷配给类型按数量配给、价格配给、风险配给、交易成本配给和自我配给进行识别,并运用多项Logit模型分析了不同信贷配给类型的影响因素,以及不同信贷配给类型之间的相对风险比(RRR)。结果表明,有50%的农户受到信贷配给;教育、借贷渠道、家庭变化和家庭总收入对数量配给有显著影响;购买保险数量对价格配给影响显著;年龄、教育和信贷需求对风险配给影响显著;购买保险数量、贷款需求和加入农民合作组织对自我配给影响显著;各因素对交易成本配给影响不显著。
Based on the survey data of 324 rural households in Shaanxi province, we identified the number rationing, price rationing, risk rationing, transaction costs rationing, and self-rationing, and used multinomial Logit to analyze influencing factors of different types of rationing and relative risk ratio.The results show that 50% households suffer from credit rationing; education, loan ways, family changes and total income have significant effects on number rationing; insurance affects price rationing significantly; age, education, loan ways have impact on risk rationing; insurance, loan demand and joining in cooperative organization have significant impact on self-rationing; the impact of all the factors on transaction cost rationing are not significant.
Valentina Diana Ign?tescu
CES Working Papers , 2010,
Abstract: It is widely acknowledge that financial constraints are the most visible problems of the SMEs. So through this paper we propose to analyze the main sources of financing that SMEs use to conducttheir business. And, from these sources, we should focus on the ways of financing offered by credit institutions. Thus, we will identify the main sources of financing available to SMEs and offered by creditinstitutions. Banks are increasingly seeking to become facilitators and partners with their SME clients. In other words, they try to offer a broader range of products, better service quality and better prices. Through this paper we will see if the bank offers are truly advantageous for SMEs.
Credit as a Source of Financing of the Entities  [PDF]
Yu. Golub
Economics of Development , 2010,
Abstract: The aim of the research is a generalization and author’s disclosures of such notion as "credit supply".As a result of the research the author conducted an analysis of generalization of the essence and meaning of the "credit support", which allowed to clarify the noted definitions. This shows that the listed specification takes into account the shortcomings of the existing definitions of that question. Also in this work the key functions put to the credit provision have been considered and the main directions of its possible classification have been defined. In total this complements the general nature and essence of the "credit support", and thus makes the received results more meaningful.At the same time as a further research direction the consideration of the mechanism of credit provision in the contemporary economy should be determined.
Research on the Financing of Small and Medium Enterprises
Juan Zhao
International Journal of Business and Management , 2009, DOI: 10.5539/ijbm.v3n11p171
Abstract: Small and medium enterprises' financing constraints are an important reason for its development in recent years, national policy and legal aspects are also efforts to promote the development of SMEs, the SME financing is still a lot of the biggest obstacles to entrepreneurs. In this paper, the status of financing small and medium enterprises start to analyze the reasons for its financing of the status, and guide financial institutions to be innovative financial products and improve financial services, a variety of financing at the same time, expand the financing channels for small and medium enterprises, can also build a multi-level credit Security system, security is difficult for SMEs to resolve outstanding issues.
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