Do SMEs benefit from the corporate sector purchase program? evidence from the eurozone. Issue 12 (13th August 2022)

• Record Type: Journal Article
• Authors: Sclip, Alex
• Is Part Of: European journal of finance. Volume 28:Issue 12(2022)
• Page Start: 1212
• Page End: 1236
• Publication Date: 2022-08-13
• Subjects: Credit constraints -- trade credit -- unconventional monetary policy -- SMEs; F36 -- G32 -- D25; Finance -- Periodicals; Finance -- Europe -- Periodicals; International finance -- Periodicals; 332.094
• DOI: 10.1080/1351847X.2021.1971100
• Languages: English
• ISSNs: 1351-847X

Abstract

Abstract : In this paper, we study the impact of the European Central Bank Corporate Sector Purchase Program on small and medium sized firms' financing using restricted data from the Survey of Access to Finance of Enterprises. We find that following the announcement, credit access improved through the reduction of both formal and informal credit constraints. Loans terms also improved as manifested by a reduction on loan application costs. The unconventional monetary policy intervention is also transmitted through trade credit in production networks as unconstrained borrowers extend more trade credit following the announcement of the program.