Estimating the financing gap of SMEs

Joseph Mc Cahery, Florencio Lopez de Silanes, Dirk Schoenmaker, Dragana Stanisic

    Research output: Contribution to journalArticleScientificpeer-review

    Abstract

    Using a novel methodology, we estimate the gap between supply and demand financing of small and medium-sized enterprise (SME) financing in several European countries. We find the largest loan gap spreads are in Poland and the Netherlands. Specifically, our results show the upper boundary of the loan gap is the lowest in Romania and the highest in the Netherlands. Moreover, the lowest lower boundary of the equity gap is in the Netherlands, while the highest lower boundary is in Romania. Overall, our results suggest that there is a significant difference between the estimated demand and supply of equity, which is on average 3% of GDP.
    Original languageEnglish
    Pages (from-to)1-54
    Number of pages54
    JournalJournal of Corporate Finance Research
    Volume12
    Issue number2
    DOIs
    Publication statusPublished - 1 Dec 2018

    Keywords

    • Small and Medium Enterprises, Bank Finance, Equity Gap, Financial Constraints, Access to Finance

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