Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing. / Rand, John.

In: Small Business Economics, Vol. 29, No. 1-2, 2007, p. 1-13.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Rand, J 2007, 'Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing', Small Business Economics, vol. 29, no. 1-2, pp. 1-13. https://doi.org/10.1007/s11187-005-1161-2

APA

Rand, J. (2007). Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing. Small Business Economics, 29(1-2), 1-13. https://doi.org/10.1007/s11187-005-1161-2

Vancouver

Rand J. Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing. Small Business Economics. 2007;29(1-2):1-13. https://doi.org/10.1007/s11187-005-1161-2

Author

Rand, John. / Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing. In: Small Business Economics. 2007 ; Vol. 29, No. 1-2. pp. 1-13.

Bibtex

@article{fb2e8ab001fc11dcbee902004c4f4f50,
title = "Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing",
abstract = "This paper examines the extent to which borrowing constraints restrict firm access to credit and identifies individual, firm, and loan characteristics, which determine the cost of capital in Vietnamese manufacturing. Using direct information from a Vietnamese enterprise survey the paper shows that between 14 and 25% of the enterprises are credit constrained, and these enterprises would increase their debt holdings by between 40 and 115% if borrowing constraints were relaxed. Moreover, it emerges that informal credit markets play an important role for fast growing firms. Enterprises do not appear to have the necessary time to go through the many administrative difficulties in the formal credit system if they want to {"}seize the day{"}. Finally, collateralized loans face larger interest rates, explained by the significant influence of {"}policy lending{"} in Vietnamese credit markets",
keywords = "Faculty of Social Sciences, credit constraints, Vietnam",
author = "John Rand",
note = "JEL Classification: O16, O53",
year = "2007",
doi = "10.1007/s11187-005-1161-2",
language = "English",
volume = "29",
pages = "1--13",
journal = "Small Business Economics",
issn = "0921-898X",
publisher = "Springer",
number = "1-2",

}

RIS

TY - JOUR

T1 - Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing

AU - Rand, John

N1 - JEL Classification: O16, O53

PY - 2007

Y1 - 2007

N2 - This paper examines the extent to which borrowing constraints restrict firm access to credit and identifies individual, firm, and loan characteristics, which determine the cost of capital in Vietnamese manufacturing. Using direct information from a Vietnamese enterprise survey the paper shows that between 14 and 25% of the enterprises are credit constrained, and these enterprises would increase their debt holdings by between 40 and 115% if borrowing constraints were relaxed. Moreover, it emerges that informal credit markets play an important role for fast growing firms. Enterprises do not appear to have the necessary time to go through the many administrative difficulties in the formal credit system if they want to "seize the day". Finally, collateralized loans face larger interest rates, explained by the significant influence of "policy lending" in Vietnamese credit markets

AB - This paper examines the extent to which borrowing constraints restrict firm access to credit and identifies individual, firm, and loan characteristics, which determine the cost of capital in Vietnamese manufacturing. Using direct information from a Vietnamese enterprise survey the paper shows that between 14 and 25% of the enterprises are credit constrained, and these enterprises would increase their debt holdings by between 40 and 115% if borrowing constraints were relaxed. Moreover, it emerges that informal credit markets play an important role for fast growing firms. Enterprises do not appear to have the necessary time to go through the many administrative difficulties in the formal credit system if they want to "seize the day". Finally, collateralized loans face larger interest rates, explained by the significant influence of "policy lending" in Vietnamese credit markets

KW - Faculty of Social Sciences

KW - credit constraints

KW - Vietnam

U2 - 10.1007/s11187-005-1161-2

DO - 10.1007/s11187-005-1161-2

M3 - Journal article

VL - 29

SP - 1

EP - 13

JO - Small Business Economics

JF - Small Business Economics

SN - 0921-898X

IS - 1-2

ER -

ID: 584093