Abstract:

This study provides new empirical findings for determiners regarding access to financing by in Turkey. In order to reveal whether Turkish companies have credit restrictions, this study investigates specific features at the company level that can affect the company’s accessibility to financing. The empirical analysis is based on the micro-level data obtained from the World Bank Business Survey for the financial year 2019. Three different credit limit measures are calculated; one of them is a perception-based subjective variable and the other two are objective variables based on direct information about the use of official financial services and credit limitations. The use of both subjective and objective variables related to credit ensures the assessment of the extent to which the main determiners between the company’s characteristics differ between the alternative credit limit measures and the classified enterprises. In general, the results of the research show that the age of the company, the current manager’s experience, the participation of women/strangers in property and the status of the exporter are significantly related to the company’s access to financing. The results clearly showed that there were some changes in the underlying corporate level factors relating to the credit status between subcategories related to alternative credit indicators. The findings of the research are very important in terms of the state of credit restrictions of companies and the development of the policy for improving the bank-company relationship in Turkey.

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