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Cowling, Marc; Mitchell, Peter

doi:10.1023/a:1024408932156

Cited by 100 publications

(9 citation statements)

References 8 publications

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“…Based on the stability-change, equity stakeholders, as the residual claimants of economic returns, may query whether the pursuit of non-economic goals comes at the expense of economic goals, thus lowering the equity ratio. If this is conceivable, there are implications for B Corps relying on concentrated ownership and facing higher credit market rationing (Cowling & Mitchell, 2003). In a related stream of research on financial gains from social responsiveness, an extensive body of research on certification or third-party certification has found mixed support (Orlitzky et al, 2003;Stahl & Strausz, 2017).…”

Section: Lower Equity Ratiomentioning

confidence: 99%

The impact of B Corp certification on financial stability: Evidence from a multi‐country sample

Patel

Dahlin

2021

Business Ethics Env & Resp

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Firms are increasingly driven by social purpose. Although skeptics doubt that for-profit firms are truly committed to socially purposeful goals, firms pursuing both economic and non-economic goals are increasingly prevalent in the organizational landscape (Cao et al., 2017;Dahlin et al., 2020;Gehman et al., 2019). Related to the social purposefulness of organizations, a major signaling mechanism that has emerged in recent years is the B Lab certification-or, certification for for-profit firms with social and environmental missions Grimes et al., 2018). Although there are a variety of sister organizational forms such as social enterprises, B Corps are increasingly meeting the global standard of goals and objectives of public benefit corporations (

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Section: Lower Equity Ratiomentioning

confidence: 99%

The impact of B Corp certification on financial stability: Evidence from a multi‐country sample

Patel

Dahlin

2021

Business Ethics Env & Resp

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“…This is central to the original work of Stiglitz and Weiss (1981), which inspired a voluminous empirical literature that sought to establish whether genuine credit rationing of highquality investment proposals was a real-world issue in the smaller business credit market (Cowling and Mitchell 2003;Fraser 2009). This empirical evidence was then used to establish a rationale for subsequent government intervention in credit markets typically through partial credit (loan) guarantee programmes (Cowling and Clay 1994;Cowling 2010;Riding 1997).…”

mentioning

confidence: 99%

UK credit and discouragement during the GFC

et al. 2016

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The availability of credit to entrepreneurs with good investment opportunities is an important facilitator of economic growth. Under normal eco- nomic conditions, most entrepreneurs who requested loans receive them. In a global financial crisis, popular opinion is that banks are severely restricting lending to smaller businesses. This assumes that low levels of investment are caused by supply-side restrictions in the credit market. Little is said about potential changes in the demand for credit and how it is influenced by entrepreneurs’ perceptions about supply-side restric- tions. One particularly interesting, and under-re- searched, group of small businesses is that who have potentially good investment opportunities, but are discouraged from applying for external funding as they fear rejection. In this study, we question whether these entrepreneurs were correct in their assumptions. We find that levels of discouragement are quite low in general at 2.7 % of the total smaller business popu- lation. Further analysis implies that 55.6 % of dis- couraged borrowers would have got loans had they applied

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“…Continuing from the previous discussion on whether bank-branches or borrowers or both improve learning over time, the extant evidence is mixed (Agnese et al, 2018;Cowling & Mitchell, 2003;Kang & Heshmati, 2008), and conditional on country-specific factors (Agnese et al, 2019). According to d 'Ignazio and Menon (2013), loan defaults are greater in the short term, but the likelihood is lower in the long term.…”

Section: The Two-sided Model Of Learning-by-lending and Learning-by-r...mentioning

confidence: 92%

Learning‐by‐lending and learning‐by‐repaying: A two‐sided learning model for defaults on Small Business Administration loans

Patel

Tsionas

2021

Manage Decis Econ

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Drawing on a sample of Small Business Administration (SBA) loans, we develop and test for a two‐sided dynamic learning model to assess the degree of learning‐by‐lending in bank branches and learning‐by‐repaying for borrowers. The results show that learning‐by‐lending is negligible; however, learning‐by‐repaying is small but meaningful, with a shallow learning curve slope of 0.2. The findings have implications for two‐sided learning and for policymakers aiming to lower defaults in SBA loans.

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Untitled

Cited by 100 publications

References 8 publications

The impact of B Corp certification on financial stability: Evidence from a multi‐country sample

The impact of B Corp certification on financial stability: Evidence from a multi‐country sample

UK credit and discouragement during the GFC

Learning‐by‐lending and learning‐by‐repaying: A two‐sided learning model for defaults on Small Business Administration loans

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