Relationships and the availability of credit to New Small Firms
AbstractWe analyze the loans that startup firms obtain from banks by testing our predictions on a set of small, young Italian companies founded during the 1992-2004 period. According to our investigation, the amount of borrowing is determined by (1) the size of the firm, (2), the ability to offer collateral (3) perceived risk. Contrary to expectations, however, the length of the relationship with the lender has a weak influence.
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Bibliographic InfoPaper provided by University of Haifa, Department of Economics in its series Working Papers with number WP2011/11.
Date of creation:
Date of revision: 23 Oct 2011
Other versions of this item:
- Colombatto, Enrico & Melnik, Arie & Monticone, Chiara, 2011. "Relationships and The Availability of Credit To New Small Firms," IEL Working Papers 6, Institute of Public Policy and Public Choice - POLIS.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-01 (All new papers)
- NEP-BAN-2011-11-01 (Banking)
- NEP-BEC-2011-11-01 (Business Economics)
- NEP-ENT-2011-11-01 (Entrepreneurship)
- NEP-SBM-2011-11-01 (Small Business Management)
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