Bank size, lending technologies, and small business finance

Berger, Allen N.; Black, Lamont K.

doi:10.1016/j.jbankfin.2010.09.004

Cited by 344 publications

(184 citation statements)

References 33 publications

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“…The primary bank's asset size may be an important determinant of the firm-bank relationship, since studies on relationship lending generally find that small banks have a comparative advantage in relationship lending (Berger and Black, 2011;Uchida, Udell, and Watanabe, 2008). The market share of the bank is included as a covariate to control for the degree of competition in a local loan market.…”

Section: Other Control Variablesmentioning

confidence: 99%

Differentiated use of small business credit scoring by relationship lenders and transactional lenders: Evidence from firm–bank matched data in Japan

Ono

Hasumi

Hirata

2014

Journal of Banking & Finance

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This paper examines the ex-post performance of small and medium-sized enterprises (SMEs) that obtained small business credit scoring (SBCS) loans. Using a unique Japanese firm-bank matched dataset, we identify whether an SME has obtained an SBCS loan and, if so, from which type of bank: a relationship lender or a transactional lender. We find that the ex-post probability of default after the SBCS loan was provided significantly increased for SMEs that obtained an SBCS loan from a transactional lender. We also find that the lending attitude of relationship lenders in the midst of the recent global financial crisis became much more severe if a transactional lender had extended an SBCS loan to a firm. These findings suggest that SBCS loans by a transactional lender are detrimental to a relationship lender's incentive to monitor SMEs and maintain relationships. In contrast, we do not find such detrimental effects for SBCS loans extended by a relationship lender.

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Section: Other Control Variablesmentioning

confidence: 99%

Differentiated use of small business credit scoring by relationship lenders and transactional lenders: Evidence from firm–bank matched data in Japan

Ono

Hasumi

Hirata

2014

Journal of Banking & Finance

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“…Self-employment depends on the business cycle; that is to say, during unemployment self-employment remains the only alternative in the job market, and vice versa during an economic boom fewer people try self-employment (Verheul et al, 2006). Berger and Black (2011) investigated the effect of granting loans on small-scale businesses and pointed out the advantages of loans granted by small banks to small businesses. Kaiser and Moller (2011) tried to find out whether self-employment was an unpleasant and unsuccessful experience, investigated the effects of selfemployment and working for wages on employment.…”

Section: Background and Theoretical Frameworkmentioning

confidence: 99%

An evaluation of small businesses in Iran

Samimi¹,

Yahyazadefar²,

Aghajani³

et al. 2013

10.5267/j.msl

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As one of the most important and fundamental issues, employment is an indicator of development and welfare in any country. Due to the rapid growth of population over the past decades in Iran, investigating unemployment and the obstacles hindering employment is of paramount importance. In this study, a questionnaire was used and a group of experts were interviewed in order to identify four groups of legal, economic, social as well as individual factors, which could improve or hinder the growth of small businesses and self-employment. In this paper, having determined the factors influencing the expansion or downsizing the small businesses, the entrepreneurs, agents supporting small businesses, and the members of employment groups in Mazandaran Province, Iran rated the four categories. Finally, the most important growth factors or challenges faced by small businesses from the three aforementioned perspectives were compared.

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“…As uplifting at the increased momentum of the informal venture capital market may be, we know from earlier research that entrepreneurial ventures are very dependent on overdrafts and credits from the banks (Hall, 2010;Berger and Black, 2011). In most part of continental Europe, as well as other parts of the world, banks are the most important source of finance for small firms (Berger and Udell, 1998; Storey and Greene, 2010).…”

Section: Introductionmentioning

confidence: 99%

The role of crowdfunding in entrepreneurial ventures: an analysis of recent trends in Sweden

Silver¹,

Berggren

Fili

2016

Investment Management and Financial Innovations

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This is the published version of a paper published in Investment Management and Financial Innovations. Citation for the original published paper (version of record):Silver, L., Berggren, B., Fili, A. (2016) The role of crowdfunding in entrepreneurial ventures: an analysis of recent trends in Sweden. The financing of entrepreneurial ventures has been at the forefront of academic debate as well as policy-making discussion for almost a century. In general, there seems to be an agreement that the risks associated with business startups are higher than for mature firms, hence, these ventures will have to pay a higher interest rate than more mature and large firms. In this paper the authors analyze the role of a relatively new form of financing for entrepreneurial ventures -crowdfunding -and how this form of financing is similar and different from traditional sources of finance. The authors are also presenting different forms and models of crowdfunding available on the market together with illustrations from the crowdfunding industry in Sweden. The analysis indicates that the positive effects with crowdfunding are numerous but that the size of the crowdfunding sector is relatively small in comparison with the banking and venture capital industry. Investment Management and Financial

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Bank size, lending technologies, and small business finance

Cited by 344 publications

References 33 publications

Differentiated use of small business credit scoring by relationship lenders and transactional lenders: Evidence from firm–bank matched data in Japan

Differentiated use of small business credit scoring by relationship lenders and transactional lenders: Evidence from firm–bank matched data in Japan

An evaluation of small businesses in Iran

The role of crowdfunding in entrepreneurial ventures: an analysis of recent trends in Sweden

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