The direct evidence shows that E is a negligible source of financing, on average, in the sample observations, and this entails a greater risk of default, which is reflected in debt constraints or increased interest rates. Consequently, an increase in NFP as a primary source of capital, as ...
In Romania, interest rates on bank loans are much higher than in other European countries, so this is a serious brake on a bank loan. The loan is advantageous only if the company's yield is much higher than the bank's interest. Kamna and Ilkhanizadah [70] suggest that high-performance...