Abstract

http://ssrn.com/abstract=282511
 
 

Citations



 


 



The Ability of Banks to Lend to Informationally Opaque Small Businesses


Allen N. Berger


University of South Carolina - Moore School of Business; Wharton Financial Institutions Center; European Banking Center

Leora F. Klapper


World Bank; World Bank - Development Research Group (DECRG)

Gregory F. Udell


Indiana University - Kelley School of Business - Department of Finance


Journal of Banking and Finance, Vol. 25, 2001

Abstract:     
We test hypotheses about the effects of bank size, foreign ownership, and distress on lending to informationally opaque small firms using a rich new data set on Argentinean banks, firms, and loans. We also test hypotheses about borrowing from a single bank versus multiple banks. Our results suggest that large and foreign-owned institutions may have difficulty extending relationship loans to opaque small firms. Bank distress appears to have no greater effect on small borrowers than on large borrowers, although even small firms may react to bank distress by borrowing from multiple banks, raising borrowing costs and destroying some relationship benefits.

Keywords: Banks, mergers, foreign ownership, financial distress, multiple lenders

JEL Classification: G21, G15, G28, G34, E58

Accepted Paper Series


Not Available For Download

Date posted: September 9, 2001  

Suggested Citation

Berger, Allen N. and Klapper, Leora F. and Udell, Gregory F., The Ability of Banks to Lend to Informationally Opaque Small Businesses. Journal of Banking and Finance, Vol. 25, 2001. Available at SSRN: http://ssrn.com/abstract=282511

Contact Information

Allen N. Berger (Contact Author)
University of South Carolina - Moore School of Business ( email )
1705 College St
Francis M. Hipp Building
Columbia, SC 29208
United States
803-576-8440 (Phone)
803-777-6876 (Fax)
Wharton Financial Institutions Center
Philadelphia, PA 19104-6367
United States
European Banking Center
P.O. Box 90153
Tilburg, 5000 LE
Netherlands
Leora F. Klapper
World Bank ( email )
1818 H Street, N.W.
Washington, DC 20433
United States
202-473-8738 (Phone)
HOME PAGE: http://econ.worldbank.org/staff/lklapper
World Bank - Development Research Group (DECRG)
1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
Gregory F. Udell
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States

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