We develop a model of bank lending that allows for credit rationing in equilibrium. Recognizing that small firms incur a higher percentage cost of monitoring than large firms, the model shows that the incidence of bank credit rationing rises more for small firms than for large firms during...

Although both large and small businesses felt the sting of job losses during the 2007-09 downturn, small firms experienced disproportionate declines. A study of the recession's employment effect on small firms suggests that poor sales and economic uncertainty were the main reasons for their weak...

While the COVID-19 pandemic had a large and asymmetric impact on firms, many countries quickly enacted massive business rescue programs which are specifically targeted to smaller firms. Little is known about the effects of such policies on business entry and exit, factor reallocation, and...

While the COVID-19 pandemic had a large and asymmetric impact on firms, many countries quickly enacted massive business rescue programs which are specifically targeted to smaller firms. Little is known about the effects of such policies on business entry and exit, factor reallocation, and...

The financial growth cycle model for small and medium size enterprises (SMEs) proposed by A. N. Berger and G. F. Udell postulates that financial needs and financing options of SMEs change as firms become larger, older, and more transparent informationally. The model predicts that as a firm...

At the initial stage of the economic slowdown, companies should have clear understanding of the specifics of the emerging crisis in order to ensure that they quicker adapt to an absolutely new situation and suffer smaller losses, securing themselves an opportunity to restore their performance...

This Data Point article focuses on small business credit, examining patterns in small business lending (SBL) and the sources of this lending among depository institutions pre-Great Recession (2004-2007), through the Great Recession (2008-2009), and then throughout the post-Great Recession...

A long-running debate in the small firms' literature questions the value of formal 'human resource management' (HRM) practices which have been linked to high performance in larger firms. We contribute to this literature by exploiting linked employer-employee surveys for 2004 and 2011. Using...