Long-lasting bank relationships and growth of firms

Gambini, Alessandro; Zazzaro, Alberto

doi:10.1007/s11187-011-9406-8

Cited by 47 publications

(36 citation statements)

References 110 publications

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“…Highly concentrated lending relationships cause detrimental effect of bank market structure on fi rm default probability, which gets stronger the longer the duration of bank-fi rm relations are. Gambini andZazzaro (2013, p. 1004) argue that the growth of bank-independent small fi rms is greater than that of small fi rms maintaining a stable credit relationship with a main bank. This situation is especially true for small expanding fi rms.…”

Section: Recent Issues In Economic Developmentmentioning

confidence: 99%

Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment

Kozubíková¹,

Belás²,

Bilan³

et al. 2015

Economics &Amp; Sociology

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Abstract. Th e issue of business in the segment of small and medium-sized companies is a very actual area of scientifi c research today. Currently, great importance is given to research of personal and knowledge preconditions of people for doing business. Th e aim of this article was to examine the relationship between personality characteristics and approach to the perception and management of business risks. Based on the preferred personality qualities and knowledge the entrepreneurs have been included into two categories, namely they are artist-entrepreneurs and businessmen-laborers, also the diff erences in their entrepreneurial attitudes have been examined. Both groups of entrepreneurs in our research rate market risk as the most important risk, which was demonstrated by a decline in performance of companies during the crisis. Our results showed that there are significant diff erences in the attitudes of these two categories of entrepreneurs in approaching credit risk, where it was found out that the defi ned categories of business have diff erent approaches to knowledge of credit conditions of commercial banks. Th e results of our study have showed a high degree of confi dence of individual groups of entrepreneurs when evaluating their ability to manage fi nancial risks in the company and the high intensity of entrepreneurial optimism regardless of the personal characteristics of entrepreneurs.

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Section: Recent Issues In Economic Developmentmentioning

confidence: 99%

Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment

Kozubíková¹,

Belás²,

Bilan³

et al. 2015

Economics &Amp; Sociology

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“…Weinstein and Yafeh (1998) and Miarka (2000) analyze a large sample of small and large Japanese enterprises in the periods 1977-1986 and 1985-1998 and nd that, although close ties to a bank improve rms' access to capital, this relationship is not necessarily accompanied by higher growth rates. Gambini and Zazzaro (2013) nd that that growth rate of Italian small enterprises is negatively aected by the maintenance of long-lasting ties with a bank, while the growth performance of other rms increases with the length of the relationship.…”

Section: The Importance Of Relationship Lendingmentioning

confidence: 92%

Financial Markets, Banks, and Growth : Disentangling the links

Giovannini¹,

Iacopetta²,

Minetti³

2013

Revue De l'OFCE

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The paper reviews the state of the economic literature on the link between nancial development and growth. We rst examine the issue of measurement of nancial development and the debate on the direction of causality between nance and growth. Next, we extensively discuss the various channels through which the nancial sector can aect growth, including the increase in the eciency of capital allocation, the reduction in information costs, the improvement of risk management, and the support of innovation. The analysis is conducted referring both to the theoretical literature and to the most recent empirical ndings. We conclude by drawing lessons for the current debate on the reform of the nancial sector in the aftermath of the Great Recession.

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“…Many authors declare that firm size is a relevant factor of financial and credit risk all over the world, including Slovakia (Beck et al, 2008;Mercieca et al, 2009;Bena and Ondko, 2012;Gambini and Zazzaro, 2013;Beck and Demigruc-Kunt, 2006;Ključnikov et al 2016;etc. ) while the external finance is having a positive impact on their growth (Gambini and Zazzaro, 2013;Behr and Guttler, 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

“…) while the external finance is having a positive impact on their growth (Gambini and Zazzaro, 2013;Behr and Guttler, 2007). According to their research, smaller companies use bank finance less responsibly than larger companies.…”

Section: Literature Reviewmentioning

confidence: 99%

The Relationship between the Risk of a Change of the Interest Rate and the Age of Entrepreneurs among Slovak SMEs

Majková¹

2016

JOC

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Young entrepreneurs and start-up founders are considered to be a drivers of innovation which is an important element of knowledge economy and competitiveness of each country. But their early age could be perceived as a factor causing the increasing impact of the credit risk because young entrepreneurs usually have a short company history, weak capital power and a lack of the guarantees. The main objective of this paper is to bring scientific evidence that the age of the entrepreneur should be considered as a factor with the significant impact on one part of the credit risk of a company-the risk of a change of the interest rate. The research was carried out among 438 Slovak companies in 2016. Based on Pearson´s chi-square analysis of the results of our research, we bring statistical evidence that age has a significant impact on the ability of the company to protect the firm against the change of the interest rate. We also found out that there is dependence between the age of the owner and the opinion that SMEs in the other EU countries have better loan conditions, especially lower interest rates, than Slovak SMEs. Research findings indicate that young entrepreneurs have problems with obtaining capital and increasing interest rates and collaterals because of their higher risk profile. But effective state support of young and innovative companies through venture financing can lead to increasing global competitiveness of the Slovak Republic.

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Long-lasting bank relationships and growth of firms

Cited by 47 publications

References 110 publications

Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment

Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment

Financial Markets, Banks, and Growth : Disentangling the links

The Relationship between the Risk of a Change of the Interest Rate and the Age of Entrepreneurs among Slovak SMEs

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