The Ability of Banks to Lend to Informationally Opaque Small BusinessesLarge and foreign-owned institutions may have difficulty extending relationship loans to informationally opaque small firms. Bank distress does not appear to affect small business lending, although even small firms may react to bank distress by borrowing from multiple banks. |
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Page 20
... Bank Barriers Hypotheses , there are three predictions from each equation . First , there should be a positive effect of LNSIZE , as smaller firms are more opaque and less likely to borrow from barriered banks . When DELINQ and LNSIZE ...
... Bank Barriers Hypotheses , there are three predictions from each equation . First , there should be a positive effect of LNSIZE , as smaller firms are more opaque and less likely to borrow from barriered banks . When DELINQ and LNSIZE ...
Page 22
... banking relationships are more opaque and less likely to borrow from barriered banks ) . The tests of the Large - Bank Barriers Hypothesis are shown in Table 3. The simplest model in which LNSIZE is the sole Opacity / Relationship ...
... banking relationships are more opaque and less likely to borrow from barriered banks ) . The tests of the Large - Bank Barriers Hypothesis are shown in Table 3. The simplest model in which LNSIZE is the sole Opacity / Relationship ...
Page 24
... banks . We evaluate the economic significance of MULTIPLE by simulating switching from a single bank to multiple banks and calculating the change in the probability of receiving a loan from a barriered bank , starting from the subsample ...
... banks . We evaluate the economic significance of MULTIPLE by simulating switching from a single bank to multiple banks and calculating the change in the probability of receiving a loan from a barriered bank , starting from the subsample ...
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Common terms and phrases
Argentina barriered banks Berger and Udell BNKASSET10 BNKNPL10 borrow from multiple Coef t-Stat Coef Dependent Variable Detragiache distress on lending distressed banks Distressed-Bank Barriers Hypothesis domestically-owned banks Dunkelberg 1999 Economic Significance effects of bank effects of LNSIZE exacerbate opacity problems excluding state-owned banks financial distress firm borrows firm's primary activity firm's primary bank foreign banks foreign-owned banks Foreign-Owned-Bank Barriers Hypothesis Garella Guiso informational opacity informationally opaque firms informationally opaque small interaction term LNSIZE*DELINQ large firms Large-Bank Barriers Hypothesis lending to informationally M&As main hypotheses measured effects multiple banks multiple lenders Multiple-Bank Bank-Distress Hypothesis Opacity/Relationship opaque small businesses Pesos Petersen and Rajan prediction primary bank distress receiving a loan relationship credit relationship lending services Scott and Dunkelberg secondary hypotheses single bank versus single banking relationships Single-Bank Firm-Opacity Hypothesis small banks small business lending smaller firms smallest 25 study found supply of relationship t-Stat Coef t-Stat Tequila crisis World Bank