Financial fragmentation and SMEs’ access to finance

This paper focuses on the impact of financial fragmentation on small and medium enterprises (SMEs)’ access to finance. We combine country-level data on financial fragmentation and the ECB’s SAFE (Survey on the Access to Finance of Enterprises) data for 12 European Union (EU) countries over 2009-2016. Our findings indicate that an increase in financial fragmentation not only raises the probability of all firms to be rationed but also to be charged higher loan rates; in addition, it increases the likelihood of borrower discouragement and it impairs firms’ perceptions of the future availability of bank funds. Less creditworthy firms are even more likely to become credit rationed, suggesting a flight to quality effect in lending. However, our study also documents a potential adverse effect of increasing bank market power resulting from greater integration. This suggests that financial integration could impair firms’ financing, if not accompanied by policy initiatives aimed at maintaining an optimal level of competition in the banking sector

Determinants of Capital Structure in Non-Financial Companies

In this paper, we evaluate firm-, industry- and country-specific factors determining a firm’s capital structure. The empirical validity of several capital structure theories has been ambiguous so far. We shed light on the main drivers of leverage and depict differences in industry and country characteristics. Using a short panel data set with a large cross-section, we are able to show that firm size, industry leverage, industry growth and tax shield positively affect leverage ratios, while profitability and liquidity have negative impacts. Moreover, our model is an improvement over Rajan and Zingales’ (1995) four-factor core model in terms of explaining data variation. The results are robust against different panel estimators, decompositions and over time

How Can Innovative Practices In HEIs Facilitate Sustainable Social And Economic Development ?

The paper is focused on analyzing net-based practices in Higher Education Institutions (HEIs) as a policy tool for instituting a sustainable social and economic development. The purpose of the study is to identify relationships between net-based HEIs and welfare perspective; to investigate the extent to which the use of innovative education can affect societies. The paper challenging the argument HEIs that perform badly have a significant negative impact on economic and social growth. The main challenge is to identify the technical, economical and social aspects of HEIs as indicators of this impact, to consider outcomes for stakeholders of society. The research draws upon E-learning as mostly effective means of reducing cost of educational services of HEIs, aims to summarize the main findings of the scientific findings. The case studies show how the effectiveness of using net learning in HEIs can lead to social and economic growth in the countries concerned. Of particular importance are the differences between developed and developing countries. Upon the examination it becomes clear that E-skills have become the effective way to overcome differences among human, social capitals of countries by significant positive effect on wage levels. Trough showing the productivity paradox in innovative HEIs the paper tries to explain divides between counties, the importance of new policies in HEIs for governments. This research will provide valuable information regarding public regional decision-making in establishing organizational structures for efficiency (social benefits) of lifelong learning, provides novel insight into the understanding of E-education becoming the benchmark for HEIs and global economies.Technology, Policy and Managemen

Are the determinants of capital structure country or firm specific?

Capital structure, SME financing, C23, G32, L26,