Publication:
Do banking relationships improve credit conditions for Spanish SMEs?

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorCardone Riportella, Clara
dc.contributor.authorCasasola, María José
dc.contributor.authorSamartín, Margarita
dc.date.accessioned2006-11-08T15:06:56Z
dc.date.available2006-11-08T15:06:56Z
dc.date.issued2005-04
dc.description.abstractSmall and medium-sized companies are extremely important for the Spanish economy. However, they face difficulties when trying to obtain financing (credit rationing). As a result, and given their limited possibilities to obtain finance in the capital market, they turn to the credit market, which is the main provider of funds for such companies. The main aim of this study is to provide an insight into the banking relationships that are developed in this market and their impact on credit rationing. Previous literature has studied this situation by focusing on price rationing and quantity rationing. This study furthers research into banking relationships by examining the effects that these relationships may have on compensation demanded for debt and the relationship with long-term credit rationing. After studying 386 SMEs listed in the Spanish Guide of Exporting Companies, the main conclusions drawn were as follows: i) SMEs working with larger numbers of financial entities and with longer relationships with these entities enjoy better access to credit; ii) SMEs that develop banking relationships by contracting financial products manage to reduce their credit costs; iii) SMEs that have longer banking relationships with banking entities benefit from better long-term credit conditions; and iv) the maintenance of banking relationships through the rendering of services reduces bank requirements in terms of guarantees in credit applications.
dc.format.extent737436 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.repecwb052806
dc.identifier.urihttp://hdl.handle.net/10016/142
dc.language.isoeng
dc.relation.ispartofseriesUC3M Working Papers. Bussiness Economics
dc.relation.ispartofseries2005-06
dc.rights.accessRightsopen access
dc.subject.ecienciaEmpresa
dc.titleDo banking relationships improve credit conditions for Spanish SMEs?
dc.typeworking paper*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
wb052806.pdf
Size:
720.15 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
DEE - Working Papers. Business Economics. WB
Economists Online