Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/4132
Type: Artigo Científico
Title: Credit granting to small firms: a Brazilian case
Author: Zambaldi, Felipe
Aranha, Francisco
Lopes, Hedibert Freitas
Politi. Ricardo
Publication Date: 2009
Abstract: Transaction costs limit the supply of credit to small and medium-sized firms (SMEs). From a sample of 65,535 SME credit proposals submitted to a large Brazilian bank between January 2004 and September 2006, this research analyzes credit granting decisions. Results suggest that small firms face credit rationing and that low risk credit contracts with liquid collateral are their primary source of credit. Also, the bank captures private information through its lending relationships with borrowers, which affects its credit granting decisions. The findings reveal that the bank under study faces difficulties in expanding the supply of credit to small firms mainly because of cost, collateral-dependency and constraints due to asymmetric information.
Keywords (english terms): Credit rationing
Small and medium-sized enterprises (SMEs)
Small business financing
Asymmetric information
Transaction costs
Language: Inglês
CNPq Area: Ciências Sociais Aplicadas
URI: https://www.sciencedirect.com/science/article/pii/S0148296309003063?via%3Dihub
Copyright: O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR.
Appears in Collections:Coleção de Artigos Científicos

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