Who Pays for Financial Crises? Price and Quantity Rationing of Publicly-Listed and Privately-Held Borrowers

Allen N. Berger, Tanakorn Makaew and Rima Turk-Ariss
Authors registered in the RePEc Author Service: Rima Turk Ariss

Review of Corporate Finance, 2023, vol. 3, issue 3, 275-327

Abstract: Financial crises yield price and quantity rationing of creditworthy borrowers. However, little is known about the relative severity of these rationing types, which borrowers are rationed most, and differences between these borrowers in different nations. Our international data on over 18,000 business loans suggest that publicly-listed firms are more often price rationed, whereas privately-held firms are more frequently quantity rationed, consistent with implications of Calomiris and Hubbard’s (1990) asymmetric information model. We uncover further differences between foreign and domestic banks and between U.S. and non-U.S. banks. We also demonstrate that financial crises change loan pricing.

Keywords: Credit rationing; foreign banks; financial crises; relationship lending; private firms (search for similar items in EconPapers)
JEL-codes: G01 G21 O16 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://dx.doi.org/10.1561/114.00000042 (application/xml)

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:now:jnlrcf:114.00000042

Access Statistics for this article

More articles in Review of Corporate Finance from now publishers
Bibliographic data for series maintained by Lucy Wiseman ().