How does peer-to-business lending affect financial policy of SMEs?
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/114407 |
Resumo: | We study how alternative sources of financing, Peer to Business (P2B) platforms, affect the financial policy of small and medium-sized enterprises (SMEs). We find that firms obtaining P2B loans are higher quality firms as they are large, more profitable, with higher sales growth, higher bank debt, and lower default rates. We conclude that P2B platforms are serving the same type of firms than traditional banks. While P2B loans do not seem to affect investment policy and performance, it does affect financial policy. Firms use the availability of P2B to reduce long-term bank debt, while they increase short-term bank debt following P2B lending. In addition, SMEs increase the number of lending relationships and reduce their dependence on a single bank, in particular those with less stable funding and lower liquidity. Our findings suggest that FinTech lending complements the debt financing choices of SMEs and allows them to diversify away from traditional banks. |
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How does peer-to-business lending affect financial policy of SMEs?We study how alternative sources of financing, Peer to Business (P2B) platforms, affect the financial policy of small and medium-sized enterprises (SMEs). We find that firms obtaining P2B loans are higher quality firms as they are large, more profitable, with higher sales growth, higher bank debt, and lower default rates. We conclude that P2B platforms are serving the same type of firms than traditional banks. While P2B loans do not seem to affect investment policy and performance, it does affect financial policy. Firms use the availability of P2B to reduce long-term bank debt, while they increase short-term bank debt following P2B lending. In addition, SMEs increase the number of lending relationships and reduce their dependence on a single bank, in particular those with less stable funding and lower liquidity. Our findings suggest that FinTech lending complements the debt financing choices of SMEs and allows them to diversify away from traditional banks.NOVA School of Business and Economics (NOVA SBE)RUNEça, AfonsoFerreira, Miguel A.Porras Prado, MelissaRizzo, Emanuele2021-03-25T23:17:13Z2021-03-042021-03-04T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/114407engPURE: 28847270https://doi.org/10.2139/ssrn.3796896info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:57:06Zoai:run.unl.pt:10362/114407Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:42:31.381076Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
How does peer-to-business lending affect financial policy of SMEs? |
title |
How does peer-to-business lending affect financial policy of SMEs? |
spellingShingle |
How does peer-to-business lending affect financial policy of SMEs? Eça, Afonso |
title_short |
How does peer-to-business lending affect financial policy of SMEs? |
title_full |
How does peer-to-business lending affect financial policy of SMEs? |
title_fullStr |
How does peer-to-business lending affect financial policy of SMEs? |
title_full_unstemmed |
How does peer-to-business lending affect financial policy of SMEs? |
title_sort |
How does peer-to-business lending affect financial policy of SMEs? |
author |
Eça, Afonso |
author_facet |
Eça, Afonso Ferreira, Miguel A. Porras Prado, Melissa Rizzo, Emanuele |
author_role |
author |
author2 |
Ferreira, Miguel A. Porras Prado, Melissa Rizzo, Emanuele |
author2_role |
author author author |
dc.contributor.none.fl_str_mv |
NOVA School of Business and Economics (NOVA SBE) RUN |
dc.contributor.author.fl_str_mv |
Eça, Afonso Ferreira, Miguel A. Porras Prado, Melissa Rizzo, Emanuele |
description |
We study how alternative sources of financing, Peer to Business (P2B) platforms, affect the financial policy of small and medium-sized enterprises (SMEs). We find that firms obtaining P2B loans are higher quality firms as they are large, more profitable, with higher sales growth, higher bank debt, and lower default rates. We conclude that P2B platforms are serving the same type of firms than traditional banks. While P2B loans do not seem to affect investment policy and performance, it does affect financial policy. Firms use the availability of P2B to reduce long-term bank debt, while they increase short-term bank debt following P2B lending. In addition, SMEs increase the number of lending relationships and reduce their dependence on a single bank, in particular those with less stable funding and lower liquidity. Our findings suggest that FinTech lending complements the debt financing choices of SMEs and allows them to diversify away from traditional banks. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-03-25T23:17:13Z 2021-03-04 2021-03-04T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/114407 |
url |
http://hdl.handle.net/10362/114407 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
PURE: 28847270 https://doi.org/10.2139/ssrn.3796896 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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