Bank Organization and Loan Contracting in Small Business Financing

Andrea Bellucci, Alexander Borisov and Alberto Zazzaro ()
Additional contact information
Alexander Borisov: University of Cincinnati, USA and MoFiR, Italy

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: Academic research recognizes that the organizational structure of banks could have implications for the financing of small businesses and entrepreneurial firms. In this chapter, we start by reviewing the underlying theoretical motivation and then summarize existing evidence. Overall, it is confirmed that the organization of lending institutions is important for the use and transmission of information, as well as credit availability for small businesses. Moreover, using a unique dataset of bank loans, we empirically document that loan contract characteristics such as interest rates and collateral requirements are sensitive to the hierarchical allocation of decision-making authority within the bank’s organization. JEL Classification:

Keywords: Bank organization structure; Authority allocation; Small business financing (search for similar items in EconPapers)
Date: 2016-01-11
New Economics Papers: this item is included in nep-ban, nep-cta and nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Forthcoming in Entrepreneurial Finance: Managerial and Policy Implications, Na Dai and Donald Siegel (eds.), Hackensack, New Jersey, USA: World Scientific Publishing

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Related works:
Working Paper: Bank Organization and Loan Contracting in Small Business Financing (2016)
Working Paper: Bank Organization and Loan Contracting in Small Business Financing (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:424

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