Banking relationships, firm-size heterogeneity and access to credit: Evidence from European firms
Gabriele Angori,
David Aristei and
Manuela Gallo
Finance Research Letters, 2020, vol. 33, issue C
Abstract:
Using detailed data on European manufacturing firms, this paper investigates the role of firm-bank relationships and lending technologies in firms’ access to credit during the 2007–2009 financial crisis. Empirical results show that firms’ credit availability improves when banking relationships are tighter and when banks adopt a relationship lending approach. The association between banking relationship characteristics and credit access is characterized by significant heterogeneity across firm size groups. Specifically, we find that relationship lending technologies, the recourse to multiple banking and a consolidated relationship with the main bank are particularly beneficial for the access to credit of informationally opaque small businesses.
Keywords: Credit rationing; Firm-bank relationships; Lending technologies; Firm size; Sample selection (search for similar items in EconPapers)
JEL-codes: C34 D22 G21 G32 O16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612318306032
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:33:y:2020:i:c:s1544612318306032
DOI: 10.1016/j.frl.2019.07.004
Access Statistics for this article
Finance Research Letters is currently edited by R. Gençay
More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().