Abstract Using a firm-level dataset from Investment Climate Survey conducted by World Bank, we study the SMEs who are discouraged from applying for bank loans for reasons. Empirical findings indicate that firms which are larger, more profitable and faster-growing are less likely to be discouraged. We also find evidence that bank-firm relationships have a significant impact on the probability of a firm being discouraged. Further analyses show that this impact is even stronger in cities with better ecological environment of finance.
LIANG Di. Evidence on Borrower Discouragement of SMEs: Effects of Bank-Firm Relationships and Ecological Environment of Finance. Economic Survey, 2014, 31(5): 0156.
2014, Vol. 31 
