Han, Liang, Storey, David J. and Fraser, Stuart. (2008) The concentration of creditors: evidence from small businesses. Applied Financial Economics, Vol.18 (No.20). pp. 1647-1656. ISSN 0960-3107

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Abstract

This article examines the determinants of concentration of creditors. The empirical evidence drawn from this article supports the proposition of Bolton and Scharfstein (1996) that for negotiation reasons, high-quality borrowers tend to borrow from multiple sources and is contrary to the theoretical prediction of Bris and Welch (2005). This finding implies the existence of hold-up problems in financing small businesses where information conveyance is difficult between lenders. It is further supported by the evidence that dispersed bank relationships are associated with relationships of a longer history and a closer physical distance to lenders.

Item Type:	Journal Article
Subjects:	H Social Sciences > HJ Public Finance
Divisions:	Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Applied Financial Economics
Publisher:	Routledge
ISSN:	0960-3107
Date:	2008
Volume:	Vol.18
Number:	No.20
Number of Pages:	10
Page Range:	pp. 1647-1656
Identification Number:	10.1080/09603100701720476
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
URI:	http://wrap.warwick.ac.uk/id/eprint/44541

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