Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms
This article evaluates the effect of the overdraft facility (or line of credit) policy by comparing a large sample of overdraft facilitated firms and matched non-overdraft facilitated firms from Eastern Europe at the sector level. The sample firms...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/06/16402328/overdraft-facility-policy-firm-performance-empirical-analysis-eastern-european-union-industrial-firms http://hdl.handle.net/10986/9319 |
| id |
okr-10986-9319 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESSIBILITY ADVERSE SELECTION AGRICULTURAL SECTOR ALLOCATIVE EFFICIENCY ASYMMETRIC INFORMATION ATTRITION AVAILABILITY OF COLLATERAL BALANCE SHEET BANKS BENCHMARK BENEFICIARIES BIASES BOOK VALUE BUDGETARY DEFICIT BUSINESS ECONOMICS CAPITAL CONSTRAINT CAPITAL STOCK CASH FLOW CERTAIN EXTENT COLLATERAL COMPARATIVE ANALYSES COMPARATIVE ECONOMICS COMPETITIVENESS COMPLIANCE COSTS CONTRACT ENFORCEMENT CREDIT DEFAULT CREDIT GUARANTEE CREDIT LINE CREDIT MARKETS CREDIT RATIONING CRITICAL SURVEY CROWDING OUT DECISION MAKING DEFAULT RATE DEFICITS DEMOCRATIC INSTITUTIONS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT FINANCE DEVELOPMENT POLICY DOMESTIC CREDIT DOMESTIC MARKET DRIVERS DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC CHARACTERISTICS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC SURVEYS ECONOMIC SYSTEM ECONOMIC THEORY ECONOMICS ECONOMICS RESEARCH EDUCATION LEVELS EMPIRICAL ANALYSIS ENROLLMENT ENTREPRENEURS ENVIRONMENTAL EQUILIBRIUM EQUIPMENT EVALUATION OF LOAN APPLICATIONS EXCHANGE RATE EXCHANGE RATES EXPENDITURE EXPENDITURES EXPLOITATION EXPORTER EXPORTERS EXPORTS FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL MARKETS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SUPPORT FIRM PERFORMANCE FIXED CAPITAL FOREIGN BANKS FOREIGN INVESTMENT FULL EMPLOYMENT FUNCTIONAL FORMS FUTURE RESEARCH GDP GDP PER CAPITA GENDER GOVERNMENT POLICY GOVERNMENT SUPPORT GROSS DOMESTIC PRODUCT GROWTH POTENTIAL GUARANTEE SCHEME GUARANTEE SCHEMES HUMAN CAPITAL IMPERFECT INFORMATION INCOME LEVEL INFLATION INNOVATION INSTRUMENT INTEREST RATES INTERMEDIATE INPUTS INTERNAL FINANCE INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT FLOWS LABOUR LABOUR MARKET LABOUR MARKET POLICIES LAND OWNERSHIP LENDERS LEVELS OF ACCESS LINE OF CREDIT LIQUIDITY LOAN LOAN APPLICANT LOAN CONTRACTS LOAN GUARANTEE LOAN MARKET LOCAL CURRENCY MACROECONOMIC POLICY MARKET ECONOMY MARKET ENVIRONMENT MARKET FAILURE MARKET SHARE MARKET SIZE MATHEMATICAL MODELS MAXIMUM LIKELIHOOD ESTIMATION METALS MIDDLE INCOME COUNTRY MONETARY FUND MORAL HAZARD MOTIVATION OUTPUTS OVERDRAFT OVERDRAFT FACILITIES OVERDRAFT FACILITY PER CAPITA INCOME PRICE VOLATILITY PRIVATE FINANCIAL INSTITUTIONS PRIVATE FINANCIAL SECTOR PRIVATE FINANCING PRODUCERS PRODUCTION CAPACITY PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTIVE RESOURCES PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIPS RECESSION RED TAPE RESOURCE ALLOCATION SELF-EMPLOYMENT SKILLED WORKERS SMALL BUSINESS SOCIAL COHESION SOURCES OF FINANCE START-UP TARIFF BARRIERS TOTAL COSTS TRADE BALANCE UNION VALUE ADDED VENTURE CAPITAL WAGES WORKING CAPITAL |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESSIBILITY ADVERSE SELECTION AGRICULTURAL SECTOR ALLOCATIVE EFFICIENCY ASYMMETRIC INFORMATION ATTRITION AVAILABILITY OF COLLATERAL BALANCE SHEET BANKS BENCHMARK BENEFICIARIES BIASES BOOK VALUE BUDGETARY DEFICIT BUSINESS ECONOMICS CAPITAL CONSTRAINT CAPITAL STOCK CASH FLOW CERTAIN EXTENT COLLATERAL COMPARATIVE ANALYSES COMPARATIVE ECONOMICS COMPETITIVENESS COMPLIANCE COSTS CONTRACT ENFORCEMENT CREDIT DEFAULT CREDIT GUARANTEE CREDIT LINE CREDIT MARKETS CREDIT RATIONING CRITICAL SURVEY CROWDING OUT DECISION MAKING DEFAULT RATE DEFICITS DEMOCRATIC INSTITUTIONS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT FINANCE DEVELOPMENT POLICY DOMESTIC CREDIT DOMESTIC MARKET DRIVERS DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC CHARACTERISTICS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC SURVEYS ECONOMIC SYSTEM ECONOMIC THEORY ECONOMICS ECONOMICS RESEARCH EDUCATION LEVELS EMPIRICAL ANALYSIS ENROLLMENT ENTREPRENEURS ENVIRONMENTAL EQUILIBRIUM EQUIPMENT EVALUATION OF LOAN APPLICATIONS EXCHANGE RATE EXCHANGE RATES EXPENDITURE EXPENDITURES EXPLOITATION EXPORTER EXPORTERS EXPORTS FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL MARKETS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SUPPORT FIRM PERFORMANCE FIXED CAPITAL FOREIGN BANKS FOREIGN INVESTMENT FULL EMPLOYMENT FUNCTIONAL FORMS FUTURE RESEARCH GDP GDP PER CAPITA GENDER GOVERNMENT POLICY GOVERNMENT SUPPORT GROSS DOMESTIC PRODUCT GROWTH POTENTIAL GUARANTEE SCHEME GUARANTEE SCHEMES HUMAN CAPITAL IMPERFECT INFORMATION INCOME LEVEL INFLATION INNOVATION INSTRUMENT INTEREST RATES INTERMEDIATE INPUTS INTERNAL FINANCE INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT FLOWS LABOUR LABOUR MARKET LABOUR MARKET POLICIES LAND OWNERSHIP LENDERS LEVELS OF ACCESS LINE OF CREDIT LIQUIDITY LOAN LOAN APPLICANT LOAN CONTRACTS LOAN GUARANTEE LOAN MARKET LOCAL CURRENCY MACROECONOMIC POLICY MARKET ECONOMY MARKET ENVIRONMENT MARKET FAILURE MARKET SHARE MARKET SIZE MATHEMATICAL MODELS MAXIMUM LIKELIHOOD ESTIMATION METALS MIDDLE INCOME COUNTRY MONETARY FUND MORAL HAZARD MOTIVATION OUTPUTS OVERDRAFT OVERDRAFT FACILITIES OVERDRAFT FACILITY PER CAPITA INCOME PRICE VOLATILITY PRIVATE FINANCIAL INSTITUTIONS PRIVATE FINANCIAL SECTOR PRIVATE FINANCING PRODUCERS PRODUCTION CAPACITY PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTIVE RESOURCES PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIPS RECESSION RED TAPE RESOURCE ALLOCATION SELF-EMPLOYMENT SKILLED WORKERS SMALL BUSINESS SOCIAL COHESION SOURCES OF FINANCE START-UP TARIFF BARRIERS TOTAL COSTS TRADE BALANCE UNION VALUE ADDED VENTURE CAPITAL WAGES WORKING CAPITAL Castillo, Leopoldo Laborda Guasch, Jose Luis Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper; No. 6101 |
| description |
This article evaluates the effect of the
overdraft facility (or line of credit) policy by comparing a
large sample of overdraft facilitated firms and matched
non-overdraft facilitated firms from Eastern Europe at the
sector level. The sample firms are compared with respect to
rates of different performance indicators including:
technical efficiency (a Data Envelopment Analysis approach
is applied to estimate the technical efficiency level for
individual sectors), production workers trained,
expenditures on research and development, and export
activity. In order to avoid the selectivity problem,
propensity score matching methodologies are adopted. The
results suggest that a certain level of overdraft facility
provided to firms would be needed to stimulate investment in
research and development, which will eventually result in
increased growth in productivity. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Castillo, Leopoldo Laborda Guasch, Jose Luis |
| author_facet |
Castillo, Leopoldo Laborda Guasch, Jose Luis |
| author_sort |
Castillo, Leopoldo Laborda |
| title |
Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms |
| title_short |
Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms |
| title_full |
Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms |
| title_fullStr |
Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms |
| title_full_unstemmed |
Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms |
| title_sort |
overdraft facility policy and firm performance : an empirical analysis in eastern european union industrial firms |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/06/16402328/overdraft-facility-policy-firm-performance-empirical-analysis-eastern-european-union-industrial-firms http://hdl.handle.net/10986/9319 |
| _version_ |
1764409303629824000 |
| spelling |
okr-10986-93192021-04-23T14:02:45Z Overdraft Facility Policy and Firm Performance : An Empirical Analysis in Eastern European Union Industrial Firms Castillo, Leopoldo Laborda Guasch, Jose Luis ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESSIBILITY ADVERSE SELECTION AGRICULTURAL SECTOR ALLOCATIVE EFFICIENCY ASYMMETRIC INFORMATION ATTRITION AVAILABILITY OF COLLATERAL BALANCE SHEET BANKS BENCHMARK BENEFICIARIES BIASES BOOK VALUE BUDGETARY DEFICIT BUSINESS ECONOMICS CAPITAL CONSTRAINT CAPITAL STOCK CASH FLOW CERTAIN EXTENT COLLATERAL COMPARATIVE ANALYSES COMPARATIVE ECONOMICS COMPETITIVENESS COMPLIANCE COSTS CONTRACT ENFORCEMENT CREDIT DEFAULT CREDIT GUARANTEE CREDIT LINE CREDIT MARKETS CREDIT RATIONING CRITICAL SURVEY CROWDING OUT DECISION MAKING DEFAULT RATE DEFICITS DEMOCRATIC INSTITUTIONS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT FINANCE DEVELOPMENT POLICY DOMESTIC CREDIT DOMESTIC MARKET DRIVERS DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC CHARACTERISTICS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC SURVEYS ECONOMIC SYSTEM ECONOMIC THEORY ECONOMICS ECONOMICS RESEARCH EDUCATION LEVELS EMPIRICAL ANALYSIS ENROLLMENT ENTREPRENEURS ENVIRONMENTAL EQUILIBRIUM EQUIPMENT EVALUATION OF LOAN APPLICATIONS EXCHANGE RATE EXCHANGE RATES EXPENDITURE EXPENDITURES EXPLOITATION EXPORTER EXPORTERS EXPORTS FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL MARKETS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SUPPORT FIRM PERFORMANCE FIXED CAPITAL FOREIGN BANKS FOREIGN INVESTMENT FULL EMPLOYMENT FUNCTIONAL FORMS FUTURE RESEARCH GDP GDP PER CAPITA GENDER GOVERNMENT POLICY GOVERNMENT SUPPORT GROSS DOMESTIC PRODUCT GROWTH POTENTIAL GUARANTEE SCHEME GUARANTEE SCHEMES HUMAN CAPITAL IMPERFECT INFORMATION INCOME LEVEL INFLATION INNOVATION INSTRUMENT INTEREST RATES INTERMEDIATE INPUTS INTERNAL FINANCE INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT FLOWS LABOUR LABOUR MARKET LABOUR MARKET POLICIES LAND OWNERSHIP LENDERS LEVELS OF ACCESS LINE OF CREDIT LIQUIDITY LOAN LOAN APPLICANT LOAN CONTRACTS LOAN GUARANTEE LOAN MARKET LOCAL CURRENCY MACROECONOMIC POLICY MARKET ECONOMY MARKET ENVIRONMENT MARKET FAILURE MARKET SHARE MARKET SIZE MATHEMATICAL MODELS MAXIMUM LIKELIHOOD ESTIMATION METALS MIDDLE INCOME COUNTRY MONETARY FUND MORAL HAZARD MOTIVATION OUTPUTS OVERDRAFT OVERDRAFT FACILITIES OVERDRAFT FACILITY PER CAPITA INCOME PRICE VOLATILITY PRIVATE FINANCIAL INSTITUTIONS PRIVATE FINANCIAL SECTOR PRIVATE FINANCING PRODUCERS PRODUCTION CAPACITY PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PRODUCTIVE RESOURCES PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIPS RECESSION RED TAPE RESOURCE ALLOCATION SELF-EMPLOYMENT SKILLED WORKERS SMALL BUSINESS SOCIAL COHESION SOURCES OF FINANCE START-UP TARIFF BARRIERS TOTAL COSTS TRADE BALANCE UNION VALUE ADDED VENTURE CAPITAL WAGES WORKING CAPITAL This article evaluates the effect of the overdraft facility (or line of credit) policy by comparing a large sample of overdraft facilitated firms and matched non-overdraft facilitated firms from Eastern Europe at the sector level. The sample firms are compared with respect to rates of different performance indicators including: technical efficiency (a Data Envelopment Analysis approach is applied to estimate the technical efficiency level for individual sectors), production workers trained, expenditures on research and development, and export activity. In order to avoid the selectivity problem, propensity score matching methodologies are adopted. The results suggest that a certain level of overdraft facility provided to firms would be needed to stimulate investment in research and development, which will eventually result in increased growth in productivity. 2012-06-29T19:09:26Z 2012-06-29T19:09:26Z 2012-06 http://documents.worldbank.org/curated/en/2012/06/16402328/overdraft-facility-policy-firm-performance-empirical-analysis-eastern-european-union-industrial-firms http://hdl.handle.net/10986/9319 English en_US Policy Research Working Paper; No. 6101 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia |