The present paper provides in–depth analysis of SME access to capital markets among Eurozone countries. First, we detect the factors – at the firm and country level – that are able to influence the likelihood of SME access to market-based finance. Second, we construct an index of what we call “market suitability”, i.e., a score that can be measured at the dimensional, sectoral and national level, which provides the percentage of firms potentially fit for marketbased finance. Our results highlight that a few Eurozone countries seem to have deployed the “potential” for capital market financing, while there exists a large percentage of unexploited potential for firms fit for market-based finance. It should also be highlighted that overall business conditions - measured by GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system - greatly influence a firm’s market suitability. In the period under consideration (2000-2014), macro factors tended to reduce the likelihood of SME access to market-based finance in most countries in our sample.

Bongini, P., Ferrando, A., Rossi, E., Rossolini, M. (2017). Suitable or non-suitable? An Investigation of Eurozone SME access to market-based finance. Intervento presentato a: RELTIF Authors' Conference, Capri (Napoli).

Suitable or non-suitable? An Investigation of Eurozone SME access to market-based finance

Bongini, P;Rossi, E;Rossolini, M
2017

Abstract

The present paper provides in–depth analysis of SME access to capital markets among Eurozone countries. First, we detect the factors – at the firm and country level – that are able to influence the likelihood of SME access to market-based finance. Second, we construct an index of what we call “market suitability”, i.e., a score that can be measured at the dimensional, sectoral and national level, which provides the percentage of firms potentially fit for marketbased finance. Our results highlight that a few Eurozone countries seem to have deployed the “potential” for capital market financing, while there exists a large percentage of unexploited potential for firms fit for market-based finance. It should also be highlighted that overall business conditions - measured by GDP growth, the degree of development of domestic financial markets, and the quality of the legal and judicial enforcement system - greatly influence a firm’s market suitability. In the period under consideration (2000-2014), macro factors tended to reduce the likelihood of SME access to market-based finance in most countries in our sample.
paper
Eurozone; Market-based finance; SMEs
English
RELTIF Authors' Conference
2016
apr-2017
2017
1
50
http://cepr.org/active/publications/discussion_papers/dp.php?dpno=12006
reserved
Bongini, P., Ferrando, A., Rossi, E., Rossolini, M. (2017). Suitable or non-suitable? An Investigation of Eurozone SME access to market-based finance. Intervento presentato a: RELTIF Authors' Conference, Capri (Napoli).
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/151018
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