Hanley, Aoife; Crook, Jonathan - In: Small Business Economics 24 (2005) 1, pp. 29-38
This paper uses unique data and looks at the interest margin for follow-up finance vis-à-vis first round-finance. Applying data for asset values, we examine the substitution between collateral and interest margins. Consistent with the theories of Bester (1985), Besanko and Thakor (1987) and the...