Niveau: Supérieur, Doctorat, Bac+8
NUMBER OF BANKS AND CREDIT RELATIONSHIPS EMPIRICAL RESULTS FROM FRENCH SMALL BUSINESS DATA Ydriss Ziane University of Paris X-Nanterre 200, avenue de la République 92001 Nanterre - France Running title : Number of banks and credit relationships : an empirical approach Abstract In this contribution, we test various theories relative to the choice of the number of bank lending relationships on a self-made sample of French small and medium business. We also use these theories to formulate hypotheses relative to collateral requirements, costs and availability of credit financing. We use specific data-set reporting detailed information on lending relationships and firm's characteristics from a sample of 244 firms. Our results suggest that firm's size, profitability and the degree of information opacity significantly reduce the number of credit relationships. Single-bank firms are more likely to face important collateral requirements, indicating that banks adopt strategic behaviours depending on the competition level represented by the number of banks. Results also put into light that potential lenders are more likely to extend credit to firms with long-term lending relationships, in the framework of credit financing which does not expose banks beyond a certain risk level. J.E.L Classification: G21; G32 Keywords: Lending relationships, Multiple bank, Small and medium business, Loan contract design
- relationships
- maintaining bank relationships
- multiple bank
- bank
- french banking
- relationships while
- bank relationship
- firm's size
- behaviour maintaining
- small business