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We investigate how intangible capital in form of intellectual property, such as patents, might mitigate financing constraints. While scholars have already argued that patents might have a signalling value reducing information asymmetries between borrowers and lenders, we quantify the value of...
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SMEs than big banks. In fact, drawing on an ethnographic study at one German savings bank and one big bank, this paper … shows that the regional savings bank does not always reach credit decisions at a lower distance. However, at the moment when … soft information becomes crucial the big bank decides at a high distance, which is likely to oppress the usage of soft …
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geographic distance between bank's headquarters and its branches; and furthermore for firm's characteristics, such as … Index as a measurement of a bank's market power. Our findings suggest that cost efficiency, geographical distance, and …
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During the last years, gravity equations have leapt from the trade literature over into the literature on financial markets. Martin and Rey (2004) were the first to provide a theoretical model for cross-border asset trade, yielding a structural gravity equation that could be tested empirically....
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