TAILIEUCHUNG - Company self-rationing: The case of the Souss-Massa region

Using data from a survey for the companies of the Region Souss-Massa (RSM), we study the determiners of credit self-rationing. Our definition of discouraged companies is for businesses if they do not apply for bank credit when they would have asked for their financial position to be illustrative. We use logistic regression and we study the characteristics of the company and those of the administrator who can affect this type of credit rationing. We notice that for self-rationing, "the age of the company", "the rate of debts", "the experience of the administrator" and " the academic level of the administrator" establish the main determiners for the discouragement. | Journal of Applied Finance Banking vol. 9 no. 6 2019 155-179 ISSN 1792-6580 print version 1792-6599 online Scientific Press International Limited Company self-rationing The case of the Souss-Massa region Aicha Amrhar1 and Lahsen Oubdi2 Abstract Using data from a survey for the companies of the Region Souss-Massa RSM we study the determiners of credit self-rationing. Our definition of discouraged companies is for businesses if they do not apply for bank credit when they would have asked for their financial position to be illustrative. We use logistic regression and we study the characteristics of the company and those of the administrator who can affect this type of credit rationing. We notice that for self-rationing the age of the company the rate of debts the experience of the administrator and the academic level of the administrator establish the main determiners for the discouragement. JEL classification numbers E51 Keywords credit self-rationing determiners. 1. Introduction For companies to continue to exist and grow they need financing. To obtain that Small and Medium-sized companies SMC generally depend on bank financing Laveren Lernoux 2012 which is not always easy to obtain despite the fact that credit is key to their economic growth. Having said that the opacity of information makes the situation even more difficult for small companies than bigger ones. Theoretically in the face of information asymmetry banks could either ration credit Stiglitz and Weiss 1981 or offer a set of contracts that act as a self-selection mechanism to distinguish 1 National School of Business and Management Ibn Zohr University Agadir Morocco 2 National School of Business and Management Ibn Zohr University Agadir Morocco Article Info Received May 10 2019. Revised June 2 2019. Published online September 10 2019. 156 Aicha Amrhar and Lahsen Oubdi good borrowers from bad ones Bester 1985 . Many small companies do not ask for bank credit even when capital is needed. These borrowers .

• Ngân hàng - Tín dụng
• Company self rationing
• The Souss Massa region
• Self rationing
• Credit self rationing
• Discouraged companies