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Multiple Banking Relationships : Do SMEs Mistrust Their Banks?

Refait-Alexandre, Catherine - 2016

This article focuses on the use of multiple banking relationships by SMEs, a key issue given their strong dependence on bank financing in a context of increasing financial constraints and higher risk of credit rationing since the crisis. We investigate whether the use of multiple banking...

Persistent link: https://www.econbiz.de/10013001399

The Value of Lending Relationships

Bird, Andrew; Hertzel, Michael G.; Karolyi, Stephen A.; … - 2022

Lending relationships are prevalent in credit markets and are a potentially important driver of bank value, but little is known about the quantitative significance of this source of intangible capital. To estimate the value of these relationships, we develop a model of the lender’s decision to...

Persistent link: https://www.econbiz.de/10013492019

Empirical analysis of credit relationships in small firms financing : sampling design and descriptive statistics

Elsas, Ralf; Henke, Sabine; Machauer, Achim; Rott, Roland; … - 1998

Despite the relevance of credit financing for the profit and risk situation of commercial banks only little empirical evidence on the initial credit decision and monitoring process exists due to the lack of appropriate data on bank debt financing. The present paper provides a systematic overview...

Persistent link: https://www.econbiz.de/10009768277

Innovation and export in SMEs : the role of relationship banking

Frazzoni, Serena; Mancusi, Maria Luisa; Rotondi, Zeno; … - 2014

Medium Enterprises (SME), their probability to export (i.e. the extensive margin) and their share of exports on total sales … impact on both SME's probability to export and their export margins. This positive effect is only marginally mediated by the … SME's increased propensity to introduce product innovation. We further discuss the financial and non-financial channels …

Persistent link: https://www.econbiz.de/10011774346

The Importance of Individual-Pair Lending Relationships

Even-Tov, Omri; Li, Xinlei; Wang, Hui; Williams, … - 2023

In this paper, we examine the significance and uniqueness of individual-pair relationships cultivated through repeated loan interactions. Using a hand-collected dataset compiled of borrowing manager and loan officer information, we find that individual-pair relationship loans are associated with...

Persistent link: https://www.econbiz.de/10014362324

Universal banks and relationships with firms

Elsas, Ralf; Krahnen, Jan Pieter - 2003

Some of the most widely expressed myths about the German financial system are concerned with the close ties and intensive interaction between banks and firms, often described as Hausbank relationships. Links between banks and firms include direct shareholdings, board representation, and proxy...

Persistent link: https://www.econbiz.de/10009765357

The price impact of lending relationships

Stein, Ingrid - 2011

, inducing borrowers to switch to larger relationship banks. -- Lending relationship ; SME ; German banking system …

Persistent link: https://www.econbiz.de/10008906017

The Price Impact of Lending Relationships

Stein, Ingrid - 2016

This study analyzes the impact of bank relationships on a firm's cost of debt. We focus on relationships with the main bank. We find that a firm's cost of debt decreases with relationship strength, proxied by the share of bank debt provided by the main lender, but rises with relationship length....

Persistent link: https://www.econbiz.de/10012989234

Do Lending Relationships Matter When Loans Are Securitized?

Bhardwaj, Abhishek; Mukherjee, Saptarshi - 2023

This paper documents a novel ``fire-sale insurance" channel through which lending relationships help borrowers when their loans are securitized into CLOs. We document that CLO managers avoid selling the loans of firms related to their underwriter bank when liquidity shocks induce selloffs....

Persistent link: https://www.econbiz.de/10014254507

Are Trade Creditors Relationship Lenders?

Uchida, Hirofumi; Udell, Gregory F.; Watanabe, Wakō - 2017

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...

Persistent link: https://www.econbiz.de/10014056182