From: Effect of financial constraints on the growth of family and nonfamily firms in Turkey
Author(s) | Year | Country | Time Span | Sample | Findings |
---|---|---|---|---|---|
Carpenter & Petersen | 2002 | USA | 1980–1992 | 1637 small manufacturing firms | Firms generally retain all of their income and they use little or no external finance. They are constrained by internal finance |
Wagenvoort | 2003 | EU Members | 1996–2000 | 194,208 manufacturing and construction firms (SMEs) | The growth of the smaller firms rely on internal cash flows more than the larger firms |
Fagiolo & Luzzi | 2006 | Italy | 1995–2000 | 14,277 manufacturing firms (covering 90% of all Italian firms with sales larger than 1 M Euros) | Small firms show greater growth performance but they are also affected by financial constraints. |
Hutchinson & Xavier | 2006 | Slovenia and Belgium | 1993–2000 for Belgium and 1994–2002 for Slovenia | 7139 Belgian and 4992 Slovenian manufacturing firms (Micro, SME, and large firms) | Slovenian firms are affected more from the financing constraints than the Belgian firms. Foreign firms can find external finance. De novo firms and firms with long term debt are the most reliant on the availability of internal finance for growth. |
Oliveira & Fortunato | 2006 | Portugal | 1990–2001 | 7653 surviving manufacturing firms (with all size classes, including micro firms) | The growth-cash flow sensitivity is greater for the smaller and younger firms. |
Serrasqueiro et al. | 2010 | Portugal | 1999–2006 | 2278 unlisted Portuguese SMEs | Cash flow dependency of growth takes higher importance for the smaller firms. |
Guariglia et al. | 2011 | China | 2000–2007 | 79,841 unlisted manufacturing and mining firms | State-owned firms are not constrained by their internal cash flow. However, the private firms especially those operating in coastal regions, with negligible foreign ownership, have problems accessing external finance. |
Guariglia & Mizen | 2012 | China, Hong Kong, Indonesia, Korea, Malaysia, the Philippines, Singapore, and Thailand. | 2001–2009 | 19,918 firm-year observations | Internal cash flows positively affect firm growth (measured by the growth of the assets). The result means the growth of the firms relies on internal cash flows. |
Yazdanfar & Turner | 2013 | Sweden | 2007–2008 | 10,383 micro firms | The growth of micro firms is positively affected by internal cash flows. This means they are reliant on their own cash flows to grow. |
Coluzzi et al. | 2015 | France, Germany, Italy, Portugal, and Spain | 1993–2005 | 482 firms (with different firm types) | The growth of the firms is positively linked to internal cash flows. |
Donati | 2016 | Italy | 2011–2008 | 76,464 surviving SMEs firms | The effect of cash flow is positive and significant for all sectors. But firms belonging to low and medium-low technologies sectors are more liquidity constrained. |
Quader | 2017 | UK | 1981–2009 | 1122 listed firms on the London Stock Exchange | The findings are parallel with financial constraints stemming from market imperfections and refer a larger firm growth- cash flow dependency for firm years facing the most binding financial constraints |
Miroshnychenko et al. | 2019 | Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, and Switzerland | 2002–2011 | 832 non-financial and non-regulated European publicly-traded firms | The relationship between firm growth and cash flows is positive and significant which addresses problems about accessing external finance. |