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Multiple banking relationships: Do SMEs mistrust their banks?

Catherine Refait-Alexandre () and Stéphanie Serve

Research in International Business and Finance, 2020, vol. 51, issue C

Abstract: This paper focuses on the determinants of the use of multiple banking relationships by SMEs. We exploit the results of an original survey conducted on a sample of French SMEs in December 2012. We first provide evidence that access to multiple banking relationships is influenced by firms’ characteristics. We find that larger, high-performing and innovative firms are more likely to develop multiple banking relationships. More originally, relying on the management literature, we also highlight the explanatory power of trust from the perspective of the CEO: when the CEO mistrusts the firm’s main bank, the firm will be more likely to engage in multiple banking relationships.

Keywords: Banking relationships; Small business; Credit rationing; Trust (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2020
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Related works:
Working Paper: Multiple banking relationships: do SMEs mistrust their banks? (2020)
Working Paper: Multiple banking relationships: do SMEs mistrust their banks? (2017)
Working Paper: Multiple banking relationships: do SMEs mistrust their banks? (2016) Downloads
Working Paper: Multiple Banking Relationships: Do SMEs Mistrust Their Banks? (2016) Downloads
Working Paper: Multiple banking relationships: do SMEs mistrust their banks? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:51:y:2020:i:c:s0275531917308267

DOI: 10.1016/j.ribaf.2018.04.005

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