On the Link Between Managerial Attributes and Firm Access to Formal Credit in Myanmar
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On the Link Between Managerial Attributes and Firm Access to Formal Credit in Myanmar. / Hansen, Henrik; Rand, John; Tarp, Finn; Trifkovic, Neda.
I: European Journal of Development Research, Bind 33, 12.01.2021, s. 1768–94.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - On the Link Between Managerial Attributes and Firm Access to Formal Credit in Myanmar
AU - Hansen, Henrik
AU - Rand, John
AU - Tarp, Finn
AU - Trifkovic, Neda
PY - 2021/1/12
Y1 - 2021/1/12
N2 - Using a survey of enterprises in Myanmar, we examine demand for formal credit and the extent to which firms are self-constrained by not applying for credit or if they apply and are constrained by bank’s rejections. We have information about firm managers’ managerial capacity and risk attitude. We use this to test if the allocation of loanable funds is systematically associated with the attributes. We find that these attributes are positively associated with firm performance and the probability of both having credit demand and applying for credit. On the supply side we find no discernible links to the traits once we control for self-constraint in applying for credit. Thus, the traits improve credit access through a higher likelihood of applying for credit not a higher probability of being granted credit when applying. We suggest to improve the allocation of credit by incentivizing banks to utilize information about managers’ business capacity.
AB - Using a survey of enterprises in Myanmar, we examine demand for formal credit and the extent to which firms are self-constrained by not applying for credit or if they apply and are constrained by bank’s rejections. We have information about firm managers’ managerial capacity and risk attitude. We use this to test if the allocation of loanable funds is systematically associated with the attributes. We find that these attributes are positively associated with firm performance and the probability of both having credit demand and applying for credit. On the supply side we find no discernible links to the traits once we control for self-constraint in applying for credit. Thus, the traits improve credit access through a higher likelihood of applying for credit not a higher probability of being granted credit when applying. We suggest to improve the allocation of credit by incentivizing banks to utilize information about managers’ business capacity.
U2 - 10.1057/s41287-020-00318-4
DO - 10.1057/s41287-020-00318-4
M3 - Journal article
AN - SCOPUS:85100071660
VL - 33
SP - 1768
EP - 1794
JO - European Journal of Development Research
JF - European Journal of Development Research
SN - 0957-8811
ER -
ID: 256471874