The Financing of Greek Enterprises Before and During the Crisis

The goal of the current study is to investigate changes in the way firms are financed and financial resources are allocated based on the characteristics of firms before and after the crisis. Using data on short-term and long-term loans of around 29,000 Greek firms in 7 sectors for the period 2003-2011, the paper carries out a descriptive analysis of their financing based on their basic characteristics. We examine financing based on size and sector of activity, as well as on balance sheet and profit and loss account information, such as, operational cost, profits, own funds etc. The conclusion that emerges is that the size of firms, their profitability and their operating cost were defining factors for maintaining access to financing in an environment of increased risk aversion and limited financing resources. The analysis points to the potential for sectoral re-composition of the economy through the financing of firms