The Effect of Economic Uncertainty on Access to Finance: An Empirical Examination for European SMEs

YILMAZER S., AVCI E., ÇİNKO M.

Journal of East-West Business, 2024 (ESCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2024
  • Doi Numarası: 10.1080/10669868.2024.2426654
  • Dergi Adı: Journal of East-West Business
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, Academic Search Premier, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, Geobase, Hospitality & Tourism Complete, Hospitality & Tourism Index, PAIS International
  • Anahtar Kelimeler: Access to finance, economic uncertainty, European SMEs
  • Yıldız Teknik Üniversitesi Adresli: Evet

Özet

This study examines the effect of economic uncertainty on the probability of access to finance for the years between 2015 and 2020. Survey on Access to Finance of Enterprises (SAFE) dataset is used for measuring the level of access to finance and The IMF World Uncertainty Index (WUI) is considered as a proxy for uncertainty. According to probit regression model results, the uncertainty negatively affects the probability of firms’ access to bank loans while positively affecting the likelihood of access to trade credit. The results also reveal that some firm-level and macroeconomic indicators significantly impact access to finance.