Credit constraints and small business credit availability
Autor(a) principal: | |
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Data de Publicação: | 2012 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.6/3050 |
Resumo: | This study investigates the effect of the ex ante private information versus ex post model in which collateral is used to overcome incentive conflicts between borrowers and lenders, and thus mitigating credit rationing. The study empirically examines differences in private and public information to test the two set of theories. Using a database of 38 639 SME credit approvals from a large Portuguese commercial bank between January 2007 to February 2012, the results show that less risky borrowers are more likely to accept an increase in collateral requirements for certain reduction in the interest rate. These results support the ex ante theory. The results also indicate that the ex post theory dominate for borrowers who had default on a loan in the past. Moreover, because one third of the loans have associated a mutual guarantee, the findings suggest that borrowers that default or are not able to provide additional guarantees are credit rationed. Furthermore, the results are robust when we control the amount of collateral pledge and the macroeconomic conditions. Therefore, in periods of economic contraction and declining in asset values lenders are more likely to require collateral. |
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Credit constraints and small business credit availabilityPequenas e médias empresas - Assimetria de informaçãoPequenas e médias empresas - Acesso créditoThis study investigates the effect of the ex ante private information versus ex post model in which collateral is used to overcome incentive conflicts between borrowers and lenders, and thus mitigating credit rationing. The study empirically examines differences in private and public information to test the two set of theories. Using a database of 38 639 SME credit approvals from a large Portuguese commercial bank between January 2007 to February 2012, the results show that less risky borrowers are more likely to accept an increase in collateral requirements for certain reduction in the interest rate. These results support the ex ante theory. The results also indicate that the ex post theory dominate for borrowers who had default on a loan in the past. Moreover, because one third of the loans have associated a mutual guarantee, the findings suggest that borrowers that default or are not able to provide additional guarantees are credit rationed. Furthermore, the results are robust when we control the amount of collateral pledge and the macroeconomic conditions. Therefore, in periods of economic contraction and declining in asset values lenders are more likely to require collateral.Este estudo analisa efeito dos modelos de informação privada ex ante versus ex post nos quais as garantias (colateral) são usadas para mitigar a assimetria de informação entre mutuários e credores. O estudo analisa empiricamente as diferenças entre informação privada e pública para testar as duas teorias. Utilizando dados de um grande banco comercial português relativamente a 38 639 contractos de créditos concedidos a PME durante o período de Janeiro de 2007 a Fevereiro de 2012, os resultados mostram que os mutuários que apresentam um menor nível de risco são mais susceptíveis de aceitar contratos com prestação de garantias adicionais por forma a obter uma redução na taxa de juro. Estes resultados sustentam empiricamente o modelo ex ante. Os resultados também mostram que a teoria ex post é dominante nos mutuários que no passado estiveram em incumprimento. Dado que a um terço dos créditos está associado uma garantia mútua, os resultados mostram que os mutuários que outrora registaram incumprimento e/ou restrições em apresentar garantias adicionais vêem a sua possibilidade de financiamento reduzida. Os resultados são robustos quando controlamos o montante das garantias prestadas e as condições macroeconómicas. Concluísse-se assim que em períodos de recessão económica e com a desvalorização dos activos, os credores solicitam cada vez mais garantias adicionais.Gama, Ana Paula Bernardino MatiasuBibliorumPinto, Sandra Isabel Saraiva2015-02-13T14:48:01Z201220122012-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.6/3050enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-12-15T09:39:19Zoai:ubibliorum.ubi.pt:10400.6/3050Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T00:44:34.918490Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Credit constraints and small business credit availability |
title |
Credit constraints and small business credit availability |
spellingShingle |
Credit constraints and small business credit availability Pinto, Sandra Isabel Saraiva Pequenas e médias empresas - Assimetria de informação Pequenas e médias empresas - Acesso crédito |
title_short |
Credit constraints and small business credit availability |
title_full |
Credit constraints and small business credit availability |
title_fullStr |
Credit constraints and small business credit availability |
title_full_unstemmed |
Credit constraints and small business credit availability |
title_sort |
Credit constraints and small business credit availability |
author |
Pinto, Sandra Isabel Saraiva |
author_facet |
Pinto, Sandra Isabel Saraiva |
author_role |
author |
dc.contributor.none.fl_str_mv |
Gama, Ana Paula Bernardino Matias uBibliorum |
dc.contributor.author.fl_str_mv |
Pinto, Sandra Isabel Saraiva |
dc.subject.por.fl_str_mv |
Pequenas e médias empresas - Assimetria de informação Pequenas e médias empresas - Acesso crédito |
topic |
Pequenas e médias empresas - Assimetria de informação Pequenas e médias empresas - Acesso crédito |
description |
This study investigates the effect of the ex ante private information versus ex post model in which collateral is used to overcome incentive conflicts between borrowers and lenders, and thus mitigating credit rationing. The study empirically examines differences in private and public information to test the two set of theories. Using a database of 38 639 SME credit approvals from a large Portuguese commercial bank between January 2007 to February 2012, the results show that less risky borrowers are more likely to accept an increase in collateral requirements for certain reduction in the interest rate. These results support the ex ante theory. The results also indicate that the ex post theory dominate for borrowers who had default on a loan in the past. Moreover, because one third of the loans have associated a mutual guarantee, the findings suggest that borrowers that default or are not able to provide additional guarantees are credit rationed. Furthermore, the results are robust when we control the amount of collateral pledge and the macroeconomic conditions. Therefore, in periods of economic contraction and declining in asset values lenders are more likely to require collateral. |
publishDate |
2012 |
dc.date.none.fl_str_mv |
2012 2012 2012-01-01T00:00:00Z 2015-02-13T14:48:01Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.6/3050 |
url |
http://hdl.handle.net/10400.6/3050 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799136342836248576 |