"Our study confirms that the financial constraints to SME’s growth tend to appear as an excess of . sensibility of the investment expenditures on firm’s cash flow. Through the application of dynamic panel data . techniques to an extended version of Eulero’s investment equation of a sample of Italian SMEs, the analysis . shows that the growth of the subsample of the small firms in backward regions of Italy is more constrained by . inside finance than that of firms in more developed regions. This is because the typical information opacity of . SMEs is worsened here by the unsatisfactory development of financial markets. Moreover, our analysis . ascertains that the small firms can significantly relax the constraints if they are able to establish a close . relationship with the banks making easier the access of bank to firm’s information. "
Titolo: | INSIDE FINANCE CONSTRAINTS ON THE GROWTH OF ITALIAN SMEs | |
Autori: | ||
Data di pubblicazione: | 2012 | |
Rivista: | ||
Abstract: | "Our study confirms that the financial constraints to SME’s growth tend to appear as an excess of . sensibility of the investment expenditures on firm’s cash flow. Through the application of dynamic panel data . techniques to an extended version of Eulero’s investment equation of a sample of Italian SMEs, the analysis . shows that the growth of the subsample of the small firms in backward regions of Italy is more constrained by . inside finance than that of firms in more developed regions. This is because the typical information opacity of . SMEs is worsened here by the unsatisfactory development of financial markets. Moreover, our analysis . ascertains that the small firms can significantly relax the constraints if they are able to establish a close . relationship with the banks making easier the access of bank to firm’s information. " | |
Handle: | http://hdl.handle.net/11591/322388 | |
Appare nelle tipologie: | 1.1 Articolo in rivista |