Social ties between SME managers and bank employees: Financial consequences vs. SME managers' perceptions

Krzysztof Jackowicz and Łukasz Kozłowski

Emerging Markets Review, 2019, vol. 40, issue C, -

Abstract: We investigate whether social ties between SME managers and bank employees affect SME access to lending, investment, growth and profitability. On the one hand, we examine the influence of social ties on financial indicators based on SME financial statements; on the other hand, we study the impact of social ties on SME managers' perceptions of their firms' main banks. Using a dataset from Poland, we find that social ties improve SMEs' access to bank financing and stimulate their investments. However, this positive impact occurs only when social ties involve bank decision-makers. In contrast, SME managers perceive all types of social ties with bank workers as valuable.

Keywords: Social ties; SME financing; SME performance; Managerial perceptions (search for similar items in EconPapers)
JEL-codes: G21 G30 M20 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:40:y:2019:i:c:4

DOI: 10.1016/j.ememar.2019.05.004

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