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Previous research suggests that loan officers may play a critical role in relationship lending by producing soft information about SMEs. For the first time, we analyze this hypothesis and find empirical evidence that indicates that loan officer activities are associated with bank production of...
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Despite the importance of the hypothesis that trade creditors may act as relationship lenders, it has been virtually impossible to directly test this hypothesis because of a lack of data. We attempt to overcome this problem by using a relatively new Japanese database on small and midsized...
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SME investment opportunities depend on the level of financing constraints that firms face. Earlier research has mainly …
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We study the effect of financial distress in foreign parent banks on local SME financing in 14 central and eastern …
Persistent link: https://www.econbiz.de/10003973496
The current literature on SME loan underwriting assumes that banks use just one of two lending technologies … typical SME bank loan is underwritten primarily based on just one of these technologies and that many different transactions …, SME lending practice is generally inconsistent with much of the academic research on how banks underwrite loans …
Persistent link: https://www.econbiz.de/10014026258
Current theoretical and empirical research suggests that small banks have a comparative advantage in processing soft information and delivering relationship lending. The most comprehensive analysis of this view found using U.S. data that smaller SMEs borrow from smaller banks and smaller banks...
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