Title RELATIONSHIP BETWEEN THE POLICY OF STRENGTHENING THE FINANCIAL SYSTEM AND GUARANTEE POLICY
Authors Lopez-Cubero Lopez, Jorge, Ceular Villamandos, Nuria, MOLINA SÁNCHEZ, HORACIO, Pombo Gonzalez, Pablo, MOLINA SÁNCHEZ, HORACIO
External publication No
Means Transylv. Rev. Adm. Sci.
Scope Article
Nature Científica
JCR Quartile 4
SJR Quartile 4
JCR Impact 0.60300
Area International
Publication date 01/06/2019
ISI 000472630400004
DOI 10.24193/tras.57E.4
Abstract One of the most important obstacles that Small and Medium Enterprises (SMEs) face when addressing their growth is access to finance. The asymmetry of information, the lack of guarantees and the difficulty in establishing effective legal rights explain these difficulties in access to finance. The solution of these obstacles has led to the implementation of policies seeking to address these challenges. The paper explains the relationship of these policies for the period 2004-2016 in 39 countries that belong to the group of developing and developed countries. Our results show that guarantee policies and the improvement of information quality are complementary. Moreover, the implementation of guarantee policies takes place in environments with weak judicial institutions. This result emphasizes the substitutable nature between guarantee systems and the legal reform of the credit rights' protections. The implications of our findings are relevant for policy makers to implement or strengthen the guarantee systems.
Keywords guarantee schemes; SME finance; public policy; information quality; legal system
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