Bank Debt Use and Firm Size: Indian Evidence

Saibal Ghosh

Small Business Economics, 2007, vol. 29, issue 1, 15-23

Abstract: The paper employs a sample of listed Indian manufacturing firms over the period 1995–2004 to examine the factors influencing the concentration of bank debt in total debt. The results indicate that the factors vary by firm size. Small to medium-sized firms have a high concentration of bank debt. The results support the reputation view that firms face differential debt choice as they grow larger. When evaluating bank regulations, policymakers need to consider the importance of the reputation-building service which banks provide to businesses. Copyright Springer 2007

Keywords: bank debt; small firms; reputation; India; G21; G32; E44 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/s11187-005-2402-0

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