IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03253971.html
   My bibliography  Save this paper

Bank commitment to an entrepreneur facing the risk of bankruptcy

Author

Listed:
  • Julien Cusin

    (IRGO - Institut de Recherche en Gestion des Organisations - UB - Université de Bordeaux - Institut d'Administration des Entreprises (IAE) - Bordeaux)

  • Vincent Maymo

    (IRGO - Institut de Recherche en Gestion des Organisations - UB - Université de Bordeaux - Institut d'Administration des Entreprises (IAE) - Bordeaux)

Abstract

An extensive body of work explains the basis of bank decisions at the time of entry into a relationship. In contrast, there has been far less research on the evolution of bank relationships over time. In the present study, we attempt to understand how a bank responds when a small business client begins to struggle and faces the risk of bankruptcy. To this end, we conducted a qualitative study on the single case of a French mutualist bank. First, our model on bank commitment highlights the oscillation and arbitrage over time between a business management and a risk management rationale. It then underscores the importance of intuition for small business advisors. This intuition or "feeling" depends on the meaning that small business advisors afford to the entrepreneur's financial difficulties, and the entrepreneur's attitude as a manager and client. In addition, we enrich the relational lending model by raising the issue of the psychological contract between the small business advisor and the entrepreneur for example.

Suggested Citation

  • Julien Cusin & Vincent Maymo, 2019. "Bank commitment to an entrepreneur facing the risk of bankruptcy," Post-Print hal-03253971, HAL.
    • Handle: RePEc:hal:journl:hal-03253971
    DOI: 10.1080/08276331.2019.1596399
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03253971. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.