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Bankruptcies of small firms and lending relationship

  • Shimizu, Katsutoshi
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    This paper empirically investigates the role played by relatively small banks in the Japanese local credit market. We test the hypothesis that small banks enhance the recovery rate from the financial distress and reduce the bankruptcy ratio of small firms. Empirical evidence suggests that small banks specialize more in relationship loans to small firms. However, this expertise is limited to the loans to unincorporated firms or those with a very small number of employees.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0378426611002779
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    Article provided by Elsevier in its journal Journal of Banking & Finance.

    Volume (Year): 36 (2012)
    Issue (Month): 3 ()
    Pages: 857-870

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    Handle: RePEc:eee:jbfina:v:36:y:2012:i:3:p:857-870
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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    23. Grunert, Jens & Weber, Martin, 2009. "Recovery rates of commercial lending: Empirical evidence for German companies," Journal of Banking & Finance, Elsevier, vol. 33(3), pages 505-513, March.
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