Journal of Banking & Finance Vol. 30 No. 1 2006
Access to external finance: Theory and evidence on the impact of monetary policy and firm-specific characteristics
Abstract
This paper examines firms’ access to bank and market finance when allowance is made for differences in firm-specific characteristics. A theoretical model determines the characteristics such as size, risk and debt that would determine firms’ access to bank or market finance; these characteristics can result in greater (or lesser) tightening of credit when interest rates increase. An empirical evaluation of the predictions of the model is conducted on a large panel of UK manufacturing firms. We confirm that small, young and risky firms are more significantly affected by tight monetary conditions than large, old and secure firms.
- DOI
- 10.1016/j.jbankfin.2005.01.002
- Volume
- 30
- Issue
- 1
- Pages
- 199-227
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref