A large literature showed that small firms experience difficulties in accessing the credit market due to informational … Institution (MGI). We test whether firms affiliated to MGIs pay less for credit, due to a joint responsibility that provides … affiliates with peer monitoring incentives. Hence, MGI willingness to post collateral signals firms credit-worthiness to banks …

A large body of literature has shown that small firms experience difficulties in accessing the credit market due to … asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus … affiliated with MGIs pay less for credit compared with similar firms which are not MGI members. We obtain this result for …

A large body of literature has shown that small firms experience difficulties in accessing the credit market due to … asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus … affiliated to MGIs pay less for credit compared with similar firms. We obtain this result for interest rates charged on loan …