Firm failure and relationship lending in an emerging economy: new evidence from small businesses

Autor:	José Eduardo Gómez-González, Nidia Ruth Reyes
Rok vydání:	2013
Předmět:	Finance Economics and Econometrics business.industry Control (management) Failure probability Economics Monetary economics business Emerging markets Hazard
Zdroj:	Macroeconomics and Finance in Emerging Market Economies. 6:131-145
ISSN:	1752-0851 1752-0843
DOI:	10.1080/17520843.2012.691890
Popis:	We study the effect of relationship lending on small firms' failure probability using a uniquely rich data set comprised of information on individual loans of a large number of small firms in Colombia. We control for firm-specific variables and find that small firms involved in long-term liaisons with commercial banks have a significantly lower probability of becoming bankrupt than otherwise identical firms not involved in a long-term credit relationship. We also find that small firms with multiple banking relationships face a lower failure hazard than otherwise identical firms involved in a unique long-term relationship.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::0af4d10bf783899ddda0bb3806a96d20 https://doi.org/10.1080/17520843.2012.691890 Zobrazit plný text záznamu