Reduction in information asymmetry and credit access for small and medium-sized enterprises

Moro, Andrea and Fink, Matthias and Maresch, D. (2015) Reduction in information asymmetry and credit access for small and medium-sized enterprises. The Journal of Financial Research, 38 (1). pp. 121-143. ISSN 0268-3946

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Abstract

We examine the relation between the quality, quantity, completeness, and timeliness of the information loan managers obtain from small and medium-sized enterprises (SMEs)and the amount of short-term credit provided to them by looking at 828 loan–manager–SME relationships in Italy. The result suggests that a reduction in information asymmetry is associated with a greater amount of credit. Moreover, the reduction in information asymmetry has a relevant economic impact on the amount of short-term credit obtained: the amount of credit provided increases by 12% when asymmetry reduces by one notch. Our results are robust to alternative specifications and to endogeneity.

Item Type: Journal Article
Keywords: credit access, information asymmetry, SME
Faculty: Lord Ashcroft International Business School
Depositing User: Unnamed user with email matthias.fink@anglia.ac.uk
Date Deposited: 26 Jun 2017 09:24
Last Modified: 26 Jun 2017 09:24
URI: http://arro.anglia.ac.uk/id/eprint/701878

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