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- Title
Firms' Financing Constraints: Do Perceptions Match the Actual Situation?
- Authors
FERRANDO, ANNALISA; MULIER, KLAAS
- Abstract
This paper draws on the SAFE survey on access to finance for a sample of 11,886 firms in the Euro Area which are matched with their nearest neighbour in a balance sheet dataset with 2.3 million firms. We investigate the role of firm characteristics with respect to firms' perceived financing constraints and actual financing constraints in the period 2009-2011. Low-profit firms are more likely to face actual financing constraints. Low working capital and high leverage ratios explain actual financing constraints to a lesser extent. Further, firms are more likely to perceive access to finance problematic when they have more debt with short-term maturity. Finally, firm age, but not size, is important in explaining both the perceived and the actual financial constraints.
- Subjects
BUSINESS finance; EUROPEAN corporations; FINANCIAL statements; WORKING capital; FINANCIAL leverage; CORPORATE debt; NEAREST neighbor analysis (Statistics); FINANCE
- Publication
Economic & Social Review, 2015, Vol 46, Issue 1, p87
- ISSN
0012-9984
- Publication type
Article