Why discouraged borrowers exist? An empirical (re)examination from less developed countries

• Type: Article in International Scientific Journal
• Date: 2017

Authors

Matias Gama, APM (Author) Other; Duarte, FD (Author) Other; Esperanca, JP (Author) Other

Journal

Title: Emerging Markets Review

Vol. 33

Pages: 19-41

ISSN: 1566-0141

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 33 Citations

Scopus - 42 Citations

Other information

Authenticus ID: P-00N-F8F

DOI: 10.1016/j.ememar.2017.08.003

Abstract (EN): Using the fourth-round database of the Business Environment and Enterprise Performance Survey (2008/09 BEEPS), this study examines the determinants of discouragement in less developed countries in Eastern Europe and Central Asia. The results show that whereas firms' opaqueness, demographic factors, and distance between lenders and borrowers better explain the discouragement due to tough loan prices and/or loan application procedures, firm risk and banking concentration explain the incidence of discouraged borrowers due to the fear of rationing. Innovator status, the legal protection of creditors and lenders in the event of default, and the coverage of information sharing instruments help explain discouragement in a transversal way. (C) 2017 Published by Elsevier B.V.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 23