Relationships and The Availability of Credit To New Small Firms
Enrico Colombatto (),
Arie Melnik () and
IEL Working Papers from Institute of Public Policy and Public Choice - POLIS
We analyze the loans that small, newly established firms obtain from the banks by certain relationships based on a set of small, young Italian companies founded during the 1992–2004 period. According to our investigation, the amount of borrowing is determined primarily by the size of the firm, and the ability to offer collateral. Contrary to expectations, however perceived risk has a weak influence. The length of relationship influences borrowing in a non linear way.
Keywords: young firms; bank loans; collateral; relationships (search for similar items in EconPapers)
JEL-codes: G21 G32 L26 (search for similar items in EconPapers)
Pages: 27 pages
New Economics Papers: this item is included in nep-ban, nep-ent and nep-sbm
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Journal Article: Relationships and availability of credit to new small firms (2012)
Working Paper: Relationships and the availability of credit to New Small Firms (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:uca:ucaiel:6
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