Defaults in bank loans to SMEs during the financial crisis

Detalhes bibliográficos
Autor(a) principal: Duarte, F. D.
Data de Publicação: 2018
Outros Autores: Gama, A. P. M., Gulamhussen, M. A.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/19932
Resumo: We investigate the role of (business) collateral and (personal) guarantees alongside small and medium enterprise (SME), lending bank and loan characteristics, macroeconomic conditions, sectors, and geographic locations while controlling for unobserved time effects in predicting default at the peak of the financial crisis. First, we find a positive relation between collateral and default, and a negative relation between guarantees and default. Second, we find a negative relation between the joint influence of collateral and high credit score, and a positive relation between the joint influence of collateral and low credit score and default. We also find a negative relation between the joint influence of guarantees and high credit score. These findings are relevant for SME policies aimed at facilitating access to credit, reducing the cost of borrowing, and decreasing default; risk management of banks; and the application of theories of financial economics in the context of a financial crisis.
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spelling Defaults in bank loans to SMEs during the financial crisisBanksCorporate financing decisionsFinancial crisisGovernment policy and regulationWe investigate the role of (business) collateral and (personal) guarantees alongside small and medium enterprise (SME), lending bank and loan characteristics, macroeconomic conditions, sectors, and geographic locations while controlling for unobserved time effects in predicting default at the peak of the financial crisis. First, we find a positive relation between collateral and default, and a negative relation between guarantees and default. Second, we find a negative relation between the joint influence of collateral and high credit score, and a positive relation between the joint influence of collateral and low credit score and default. We also find a negative relation between the joint influence of guarantees and high credit score. These findings are relevant for SME policies aimed at facilitating access to credit, reducing the cost of borrowing, and decreasing default; risk management of banks; and the application of theories of financial economics in the context of a financial crisis.Springer2020-02-18T10:09:54Z2018-01-01T00:00:00Z20182020-02-18T10:09:23Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/19932eng0921-898X10.1007/s11187-017-9944-9Duarte, F. D.Gama, A. P. M.Gulamhussen, M. A.info: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:RCAAP2024-07-07T02:33:06Zoai:repositorio.iscte-iul.pt:10071/19932Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-07-07T02:33:06Repositório 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 Defaults in bank loans to SMEs during the financial crisis
title Defaults in bank loans to SMEs during the financial crisis
spellingShingle Defaults in bank loans to SMEs during the financial crisis
Duarte, F. D.
Banks
Corporate financing decisions
Financial crisis
Government policy and regulation
title_short Defaults in bank loans to SMEs during the financial crisis
title_full Defaults in bank loans to SMEs during the financial crisis
title_fullStr Defaults in bank loans to SMEs during the financial crisis
title_full_unstemmed Defaults in bank loans to SMEs during the financial crisis
title_sort Defaults in bank loans to SMEs during the financial crisis
author Duarte, F. D.
author_facet Duarte, F. D.
Gama, A. P. M.
Gulamhussen, M. A.
author_role author
author2 Gama, A. P. M.
Gulamhussen, M. A.
author2_role author
author
dc.contributor.author.fl_str_mv Duarte, F. D.
Gama, A. P. M.
Gulamhussen, M. A.
dc.subject.por.fl_str_mv Banks
Corporate financing decisions
Financial crisis
Government policy and regulation
topic Banks
Corporate financing decisions
Financial crisis
Government policy and regulation
description We investigate the role of (business) collateral and (personal) guarantees alongside small and medium enterprise (SME), lending bank and loan characteristics, macroeconomic conditions, sectors, and geographic locations while controlling for unobserved time effects in predicting default at the peak of the financial crisis. First, we find a positive relation between collateral and default, and a negative relation between guarantees and default. Second, we find a negative relation between the joint influence of collateral and high credit score, and a positive relation between the joint influence of collateral and low credit score and default. We also find a negative relation between the joint influence of guarantees and high credit score. These findings are relevant for SME policies aimed at facilitating access to credit, reducing the cost of borrowing, and decreasing default; risk management of banks; and the application of theories of financial economics in the context of a financial crisis.
publishDate 2018
dc.date.none.fl_str_mv 2018-01-01T00:00:00Z
2018
2020-02-18T10:09:54Z
2020-02-18T10:09:23Z
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/10071/19932
url http://hdl.handle.net/10071/19932
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0921-898X
10.1007/s11187-017-9944-9
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.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
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
instname_str 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)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv mluisa.alvim@gmail.com
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