Objective: The variables of customer concentration and bank loan contracts can affect corporate finance activities, and customer concentration may increase corporate returns. Methods: Under this study, the relationship between customer concentration and bank loan contracts have been investigated first and then the moderating effect of financial status variables and accounts payable on relation...

Economic interdependence between suppliers and customers generates proprietary information useful for credit risk assessment. Such proprietary information can mitigate information asymmetry between borrowers and lenders, and substitutes for conservative accounting numbers in debt contracting. We hypothesize that a pre-existing lending relationship with a borrower’s customer(s) grants the lender...

Microfinance institutions focus on providing financial services for low-income citizens who typically lack access to traditional banking systems. In recent years there has been an significant growth in the number of online microlending sites that connect lenders to microfinance institutions and individuals that require funding. Although traditional (offline) microfinance has been widely studied...

This paper studies bank loans over the business cycles in Iran to determine the role of Iranian banks in stabilizing credit. By estimating the long-run relations using dynamic OLS and fully modified OLS estimators, the findings show that real bank lending is positively related to real GDP in the long-run providing evidences of the pro-cyclicality of bank lending in Iran. Hence, Iranian banking ...

Research on relationship lending focuses attention on economic factors which influence the relationships between SMEs’ owners/managers and banks but no previous work has focused on the role of trust. Trust is expected to reduce agency costs, the perceived credit risk and, thus, influence credit availability and credit terms. Trustworthiness is associated with three attributes of SME owner manag...

Abstract Using firm-level survey information, we investigate whether relationship lending affects firms’ employment decisions in the face of negative sales shock. We find that firms with a durable their main bank display significantly less growth sensitivity to such shocks, especially where these are transitory. The result is stronger for younger and smaller benefit from tighter bank-firm relat...

Research on relationship lending focuses attention on economic factors which influence the relationships between SMEs’ owners/managers and banks but no previous work has focused on the role of trust. Trust is expected to reduce agency costs, the perceived credit risk and, thus, influence credit availability and credit terms. Trustworthiness is associated with three attributes of SME owner manag...

Research on relationship lending focuses attention on economic factors which influence the relationships between SMEs’ owners/managers and banks but no previous work has focused on the role of trust. Trust is expected to reduce agency costs, the perceived credit risk and, thus, influence credit availability and credit terms. Trustworthiness is associated with three attributes of SME owner manag...