Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data
The aim of this paper is to investigate whether Brazilian manufacturing firms are credit constrained. We exploit a rich database that contains more than three thousand firms with characteristics that may affect their degree of credit constraint: size, being listed in the Brazilian stock market and l...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2017-01-01
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| Series: | EconomiA |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1517758016301412 |
| _version_ | 1818001811592708096 |
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| author | Antônio Marcos Hoelz Pinto Ambrozio Filipe Lage de Sousa João Paulo Martin Faleiros André Albuquerque Sant’Anna |
| author_facet | Antônio Marcos Hoelz Pinto Ambrozio Filipe Lage de Sousa João Paulo Martin Faleiros André Albuquerque Sant’Anna |
| author_sort | Antônio Marcos Hoelz Pinto Ambrozio |
| collection | DOAJ |
| description | The aim of this paper is to investigate whether Brazilian manufacturing firms are credit constrained. We exploit a rich database that contains more than three thousand firms with characteristics that may affect their degree of credit constraint: size, being listed in the Brazilian stock market and level of exports-sales ratio. Our results show that all dimensions considered here may affect the sensitiveness of investment to cash flow. Large firms, stock market listed firms as well as firms with better export capacity are associated with inexistence or less credit restriction. Specifically, considering firms’ size, our results corroborate the economic theory prediction and empirical international literature. Furthermore, the influence of being listed in the stock market and export capacity is beyond any possible correlation with size. Even small and middle firms are not credit constrained when listed in the stock market or when the exports-sales ratio is higher. |
| first_indexed | 2024-04-14T03:39:06Z |
| format | Article |
| id | doaj.art-e499b37ff86145428448ef5d59415454 |
| institution | Directory Open Access Journal |
| issn | 1517-7580 |
| language | English |
| last_indexed | 2024-04-14T03:39:06Z |
| publishDate | 2017-01-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | EconomiA |
| spelling | doaj.art-e499b37ff86145428448ef5d594154542022-12-22T02:14:38ZengEmerald PublishingEconomiA1517-75802017-01-01181738710.1016/j.econ.2016.12.001Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level dataAntônio Marcos Hoelz Pinto Ambrozio0Filipe Lage de Sousa1João Paulo Martin Faleiros2André Albuquerque Sant’Anna3Brazilian Development Bank (BNDES) and Pontifícia Universidade Católica (PUC-RJ), Av. República do Chile, 330, Centro, 20031-170, Rio de Janeiro/RJ, BrazilBrazilian Development Bank and Universidade Federal Fluminese (UFF), Av. República do Chile, 330, Centro, 20031-170, Rio de Janeiro/RJ, BrazilBrazilian Development Bank (BNDES), Av. Presidente Juscelino Kubitschek, 510 - 5° andar, Vila Nova Conceição, 04543-906 São Paulo, BrazilBrazilian Development Bank (BNDES) and Universidade Federal do Rio de Janeiro (UFRJ), Av. República do Chile, 330, Centro, 20031-170, Rio de Janeiro/RJ, BrazilThe aim of this paper is to investigate whether Brazilian manufacturing firms are credit constrained. We exploit a rich database that contains more than three thousand firms with characteristics that may affect their degree of credit constraint: size, being listed in the Brazilian stock market and level of exports-sales ratio. Our results show that all dimensions considered here may affect the sensitiveness of investment to cash flow. Large firms, stock market listed firms as well as firms with better export capacity are associated with inexistence or less credit restriction. Specifically, considering firms’ size, our results corroborate the economic theory prediction and empirical international literature. Furthermore, the influence of being listed in the stock market and export capacity is beyond any possible correlation with size. Even small and middle firms are not credit constrained when listed in the stock market or when the exports-sales ratio is higher.http://www.sciencedirect.com/science/article/pii/S1517758016301412Credit constraintFirms’ investmentCash flowExportsStock market |
| spellingShingle | Antônio Marcos Hoelz Pinto Ambrozio Filipe Lage de Sousa João Paulo Martin Faleiros André Albuquerque Sant’Anna Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data EconomiA Credit constraint Firms’ investment Cash flow Exports Stock market |
| title | Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data |
| title_full | Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data |
| title_fullStr | Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data |
| title_full_unstemmed | Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data |
| title_short | Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data |
| title_sort | credit scarcity in developing countries an empirical investigation using brazilian firm level data |
| topic | Credit constraint Firms’ investment Cash flow Exports Stock market |
| url | http://www.sciencedirect.com/science/article/pii/S1517758016301412 |
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