BORROWER DISCOURAGEMENT IN A BANK-BASED ECONOMY: EMPIRICAL EVIDENCE FOR SPANISH SMES

This paper analyzes the factors explaining borrower discouragement for a sample of SMEs operating in a bank-based economy. We find that higher informational asymmetries and loan application costs increase the likelihood of borrower discouragement for smaller firms and for firms working with less ban...

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Bibliographic Details
Format: Article
Language:English
Published: Universidade de Santiago de Compostela 2018-02-01
Series:Revista Galega de Economía
Online Access:https://ojs3usc.devxercode.es/index.php/ubr/article/view/2740
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Summary:This paper analyzes the factors explaining borrower discouragement for a sample of SMEs operating in a bank-based economy. We find that higher informational asymmetries and loan application costs increase the likelihood of borrower discouragement for smaller firms and for firms working with less banks. We also show that firms whose managers show an attitude towards growth and business improvement are less likely to be discouraged from applying for a loan.
ISSN:1132-2799
2255-5951