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...

We use a comprehensive database concerning the application and allocation of business subsidies in Finland merged with the firm-level data comprising about 330 000 firms from the year 2004 to 2008. We find strong continuities in participation both within and between the different public support...