Artikel
The Effects of Financial Support Policies on Corporate Decisions by SMEs
This paper investigates the effectiveness of public credit guarantee programs and interest-support programs for SMEs (small and medium enterprises). First, assuming that there is an imperfect information structure in the SME loan market, we analyze how SME support financial programs affect the corporate decisions made by SMEs with regard to default or loan sizes. In addition, this paper theoretically computes the optimal levels of credit guarantee amounts and the interest-support spread under equilibrium with imperfect information in a competitive loan market. Second, the paper mpirically analyzes the continuous policy-treatment effect with the GPS (generalized propensity score) method. In particular, we consider the ratio of guaranteed debt to the total debt as a continuous policy treatment. The empirical results show that marginal effects of a credit guarantee on SMEs' productivity, rofitability, and growth potential decrease with the ratio of guaranteed debt to the total debt. In addition, the average effect of a credit guarantee is maximized when this ratio is at 50% to 60%.
- Language
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Englisch
- Bibliographic citation
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Journal: KDI Journal of Economic Policy ; ISSN: 2586-4130 ; Volume: 38 ; Year: 2016 ; Issue: 3 ; Pages: 79-106 ; Sejong: Korea Development Institute (KDI)
- Classification
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Wirtschaft
Information and Market Efficiency; Event Studies; Insider Trading
General Financial Markets: Government Policy and Regulation
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
- Subject
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Small and Mediumsized Enterprises
Information Asymmetry
Loan Market
Credit Guarantee
Generalized Propensity Score
- Event
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Geistige Schöpfung
- (who)
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Nam, Chang Woo
- Event
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Veröffentlichung
- (who)
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Korea Development Institute (KDI)
- (where)
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Sejong
- (when)
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2016
- DOI
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doi:10.23895/kdijep.2016.38.3.79
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Nam, Chang Woo
- Korea Development Institute (KDI)
Time of origin
- 2016
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