 |
The Journal of Finance Article Abstract
|
The Benefits of Lending Relationships: Evidence from Small Business Data |
Only members can view the full article in JStor. If you are a member, login in now. If you would like to become a member, click here to register.
Abstract:
This paper empirically examines how ties between a firm and its creditors affect the availability and cost of funds to the firm. We analyze data collected in a survey of small firms by the Small Business Administration. The primary benefit of building close ties with an institutional creditor is that the availability of financing increases. We find smaller effects on the price of credit. Attempts to widen the circle of relationships by borrowing from multiple lenders increases the price and reduces the availability of credit. In sum, relationships are valuable and appear to operate more through quantities rather than prices.
Page range: 3 - 37 35 Page(s)
 |
|
 |
|
 |
|
| » | Aims & Scope |
| » | Search |
| » | Browse Content |
| » | Forthcoming Articles |
| » | Supplements & Datasets |
| » | Clarifications and Errata |
| » | Submissions |
| » | Editor's Report |
| » | Editorial Board |
| » | Turnaround Stats |
| » | Prizes and Awards |
| » | View a Sample Copy |
| » | Subscriptions |