The concentration of creditors: evidence from small businesses
Han, Liang, Storey, D. J. and Fraser, Stuart. (2008) The concentration of creditors: evidence from small businesses. Applied Financial Economics, Vol.18 (No.20). pp. 1647-1656. ISSN 0960-3107Full text not available from this repository.
Official URL: http://dx.doi.org/10.1080/09603100701720476
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|
|Number of Pages:||10|
|Page Range:||pp. 1647-1656|
|Access rights to Published version:||Restricted or Subscription Access|
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