IDEAS home Printed from https://ideas.repec.org/p/ris/eibpap/2003_008.html
   My bibliography  Save this paper

Financing the German Mittelstand

Author

Listed:
  • Hommel, Ulrich

    (European Business School)

  • Schneider, Hilmar

    (European Business School)

Abstract

Based on a survey conducted among German Mittelstand firms and capital structure data on the Mittelstand, this paper sheds light on the current and future financing situation of the Mittelstand. The paper documents the equity shortage and dependence on bank debt typically associated with the Mittelstand. It further emphasises that - at present - fears of systematic credit rationing are difficult to substantiate (though a lack of alternative sources of finance can be expected to adversely affect future credit supply) and argues that the consolidation of the German banking sector as well as Basel II should not constitute major obstacles to the future growth of the Mittelstand. Still, the paper concludes that a typical Mittelstand firm's access to external finance will remain a key factor and, against that background, comments on specific measures of improvement from the perspective of regulators, banks, and firms.

Suggested Citation

  • Hommel, Ulrich & Schneider, Hilmar, 2009. "Financing the German Mittelstand," EIB Papers 8/2003, European Investment Bank, Economics Department.
    • Handle: RePEc:ris:eibpap:2003_008
    as

    Download full text from publisher

    File URL: http://www.eib.org/attachments/efs/eibpapers/eibpapers_2003_v08_n02_en.pdf#page=52
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Mittelstrand firms; Capital structure data; Financing situation; Equity shortage; Bank debt; Systemic credit rationing;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:eibpap:2003_008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Polyxeni Kanelliadou (email available below). General contact details of provider: https://edirc.repec.org/data/ceeiblu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.