Credit Information and Firms’ Access to Finance: Evidence from a New Credit-Constrained Status Measure
March 30, 2017DECRG Kuala Lumpur Seminar Series

This study uses a recently developed firm-level measure of credit constraints for 111 countries from the World Bank Enterprise Surveys to analyze the role of credit information in firms’ access to finance. The new data classifies firms in four categories according to their access to finance from least to most credit constrained. The findings of regression analyses show that small and medium size firms are more likely to be credit constrained. In addition, a more advanced credit information system is associated with lower levels of credit constraints particularly for smaller firms, firms that are not externally audited or do not have a quality certification. These findings confirm the results of previous studies that have used firms’ perceptions of financial obstacles to measure financial access.

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  • Edgar Chavez

    Edgar Chavez joined the Doing Business team in February 2013. He currently works on the Getting Credit - Credit Information indicator and previously worked on the Registering Property indicator. He holds a Master's degree in international relations and international economics from Johns Hopkins University's School of Advanced International Studies and a Bachelor's degree in international relations from the Tecnologico de Monterrey (Mexico). Prior to joining the World Bank Group, Edgar worked at the Center for Strategic and International Studies and at the commercial section of the Canadian Embassy in Mexico. He speaks Spanish, French and is conversant in Russian. He is currently based at the World Bank office in Kuala Lumpur, Malaysia.
Event Details
  • WHEN: Thursday, March 30, 2017; 12:30-2:00PM
  • WHERE: World Bank Malaysia Office, Level 3, Sasana Kijang, No. 2, Jalan Dato’ Onn
  • RSVP: Kindly RSVP by Wednesday, March 29, 2017