SMEs’ line of credit under the COVID-19: evidence from China
نویسندگان
چکیده
How does the COVID-19 affect SMEs’ financing in emerging markets? In this paper, we investigate impact of COVID-induced shock on Chinese line credit (LOC) using deal-level data. As Hubei province was mostly affected, employ a difference-in-differences approach with propensity score matching (PSM-DID) and compare responses before after outbreak relative to those non-Hubei SMEs. Our results suggest that demand reduced significantly compared SMEs, adverse effects were more pronounced for non-state-owned enterprises (non-SOEs) SMEs without prior bank relationships. Moreover, show negative having supply chain relationships province. Such rippled through exerted an intensified strike customers. Finally, find state-owned banks eased LOC during pandemic outbreak. Plain English Summary deteriorated outbreak, though supported by banks. our According study, government COVID-supportive policies should target SME subgroups such as non-SOEs, firms heavily rely chain, stable
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ژورنال
عنوان ژورنال: Small Business Economics
سال: 2021
ISSN: ['1573-0913', '0921-898X']
DOI: https://doi.org/10.1007/s11187-021-00474-9