Relationships and The Availability of Credit To New Small Firms
AbstractWe analyze the loans that small, newly established firms obtain from the banks by certain relationships based on a set of small, young Italian companies founded during the 1992–2004 period. According to our investigation, the amount of borrowing is determined primarily by the size of the firm, and the ability to offer collateral. Contrary to expectations, however perceived risk has a weak influence. The length of relationship influences borrowing in a non linear way.
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Bibliographic InfoPaper provided by Institute of Public Policy and Public Choice - POLIS in its series IEL Working Papers with number 6.
Length: 27 pages
Date of creation: Jul 2011
Date of revision:
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Web page: http://polis.unipmn.it
young firms; bank loans; collateral; relationships;
Other versions of this item:
- Colombatto, Enrico & Melnik, Arie & Monticone, Chiara, . "Relationships and the availability of credit to New Small Firms," Working Papers WP2011/11, University of Haifa, Department of Economics, revised 23 Oct 2011.
- 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-2011-07-13 (All new papers)
- NEP-BAN-2011-07-13 (Banking)
- NEP-ENT-2011-07-13 (Entrepreneurship)
- NEP-SBM-2011-07-13 (Small Business Management)
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