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Concentration of Creditors: Evidence from Small Businesses

Han, L, Storey, D and Fraser, S (2008) Concentration of Creditors: Evidence from Small Businesses Applied Financial Economics, 18 (20).

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This article examines the determinants of concentration of creditors. The empirical evidence drawn from this article supports the proposition of Bolton and Scharfstein (1996) that for negotiation reasons, high-quality borrowers tend to borrow from multiple sources and is contrary to the theoretical prediction of Bris and Welch (2005). This finding implies the existence of hold-up problems in financing small businesses where information conveyance is difficult between lenders. It is further supported by the evidence that dispersed bank relationships are associated with relationships of a longer history and a closer physical distance to lenders.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
Han, L
Storey, D
Fraser, S
Date : 7 November 2008
DOI : 10.1080/09603100701720476
Additional Information : This is an electronic version of an article published in Applied Financial Economics, 18(20), 1647-1656 (2008). Applied Financial Economics is available online at
Depositing User : Symplectic Elements
Date Deposited : 28 Mar 2017 14:38
Last Modified : 31 Oct 2017 14:25

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