Relationship between the Policy of Strengthening the Financial System and Guarantee Policy

Transylvanian Review of Administrative Sciences. 2019;15(57):51-66 DOI 10.24193/tras.57E.4

 

Journal Homepage

Journal Title: Transylvanian Review of Administrative Sciences

ISSN: 1842-2845 (Print)

Publisher: Babes Bolyai University

Society/Institution: Babes Bolyai University, Public Administration Department

LCC Subject Category: Political science: Political institutions and public administration (General)

Country of publisher: Romania

Language of fulltext: English

Full-text formats available: PDF

 

AUTHORS


Jorge López-Cubero López (PhD candidate, Department of Statistics, Econometrics, Operations Research and Organization, Faculty of Labor Sciences, University of Córdoba, Spain)

Nuria Ceular Villamandos (Professor PhD, Director of the Department of Statistics, Econometrics, Operations Research and Organization, Faculty of Labor Sciences, University of Córdoba, Córdoba, Spain)

Horacio Molina Sánchez (Professor PhD, Director of the Department of Financial Economics and Accounting, University of Loyola Andalucía, Córdoba, Spain Tel.: 0034-616-961.278 E-mail: [email protected])

Pablo Pombo González (Associate Professor PhD, Department of Statistics, Econometrics, Operations Research, Business Organization and Applied Economics, Faculty of Law and Economic and Business Sciences, University of Córdoba, Córdoba, Spain)

EDITORIAL INFORMATION

Double blind peer review

Editorial Board

Instructions for authors

Time From Submission to Publication: 25 weeks

 

Abstract | Full Text

<p>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.</p><p>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.</p>