How does government-backed finance affect SMEs’ crisis predictors
Bibliographic Data
| ID | 14867352 |
|---|---|
| Authors | Lorenzo Gai (0000-0001-8407-0847, University of Florence, corresponding author), Maria Cristina Arcuri (0000-0002-7349-8562, University of Parma), Federica Ielasi (0000-0002-5971-0192, University of Florence) |
| Year | 2023 |
| Volume | 61 |
| Issue | 3 |
| Pages | 1205-1229 |
| Publication date | 2023-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Small Business Economics (JOURNAL) |
| Journal identifiers | ISSN: 0921-898X • E-ISSN: 1573-0913 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11187-023-00733-x |
| PMID | 38625365 |
| OpenAlex | W4322491412 |
| Language | EN |
| Citations received | 3 |
| References cited | 69 |
This paper estimates the impact of public guarantees on crisis predictive indicators among small and mid-size enterprises (SMEs). We use a confidential database provided by the Italian Ministry of Economic Development on the universe of guarantees granted by the Central Guarantee Fund. We apply difference-in-difference regressions and propensity-score matching estimators to a sample of approximately 40,000 SMEs over the 2010–2018 period. We find that obtaining a public guarantee improves profitability both in the short- and medium-term. On the other hand, SMEs’ financial health worsens in the short run, but financial burdens are alleviated 2 years after the issuance of a guarantee. The economic and financial effects of government-backed loans are amplified for micro-sized firms, companies operating in the service sector and direct guarantees. Our results can thus support public authorities in designing credit guarantee schemes capable of preventing SMEs’ zombification and protecting them from the risk of debt overhang
Access to Finance · Business · Christian ministry · Debt · Economics · Entrepreneurship · Financial crisis · Financial system · Government (linguistics · Profitability index · Propensity score matching · Sample (material · Banking stability, regulation, efficiency · Corporate Finance and Governance · Italy: Economic History and Contemporary Issues · Finance
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Using the Propensity Score Method to Estimate Causal Effects
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Financial Ratios and the Probabilistic Prediction of Bankruptcy
The economics of small business finance
Financial Ratios As Predictors of Failure
A more complete conceptual framework for SME finance
Program Heterogeneity and Propensity Score Matching
Determinants of small firm debt ratios
Public guarantees
Is the Small Firms Loan Guarantee Scheme Hazardous for Banks or Helpful to Small Business
Effect of credit guarantee policy on survival and performance of SMEs in Republic of Korea
Spanish SMEs’ Subsidized and Guaranteed Credit during Economic Crisis
| Unique citing works | 3 |
|---|---|
| Citations per year | 1 |
| Citation span | 2023 - 2025 (3) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |