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Strong lending relationships between banks and small and medium-sized enterprises (SMEs) play a key role in the bank-based financial system of Germany. So far, they have been mainly described by the notion of an housebank and transactional features of long-term bank-customer relationships. The...
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This study addresses the relationship between product innovation and the demand and supply of trade credit. Theoretical … credit demand and supply. Using a sample covering SMEs from 24 European countries this relationship is tested empirically … of trade credit for SMEs. Innovative firms have a higher probability to face credit constraints and therefore have a …
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