The effects of distance on bank-firm relationship. Some empirical evidences
Journal title ARGOMENTI
Author/s Andrea Bellucci, Ilario Favaretto
Publishing Year 2011 Issue 2011/33 Language Italian
Pages 34 P. 105-138 File size 975 KB
DOI 10.3280/ARG2011-033005
DOI is like a bar code for intellectual property: to have more infomation
click here
Below, you can see the article first page
If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits
FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.
In this work we document the effects of distances and firm’s location with its referred bank branch on loan contract terms in the local credit markets. Before we try to discern the nature of these cost and subsequently to imputes it to one of the parts involved in the lending relationship. The results show the importance of the role played by distances on price and non-price terms. Increasing bank-firm distance generates augmented costs, that should fall on the bank requiring of the firms located far away a higher cost of credit and a more binding credit limit. The nature of these costs seems to fall on the information costs.
Keywords: Distances, transportation costs, information costs, interest rate, firm’s financing, relationship lending, small business firms
Jel codes: R3, D23, D82, E43, D40
Andrea Bellucci, Ilario Favaretto, Gli effetti della distanza su alcune componenti della relazione creditizia. Evidenze empiriche in "ARGOMENTI" 33/2011, pp 105-138, DOI: 10.3280/ARG2011-033005