Lending competition and credit availability for new firms: Empirical study with the price cost margin in regional loan markets

Yoshiaki Ogura*

*この研究の対応する著者

研究成果: Article査読

17 被引用数 (Scopus)

抄録

In this paper, I present statistical evidence of the impact of lending competition on credit availability for new firms. A discrete-time duration analysis with respect to the years from the start-up to the first loan approval by a commercial bank or a cooperative bank, which is collected from survey data in Japan, shows that the higher price cost margin (PCM) of banks, which reflects the existence of a quasi-rent for a bank, improves the credit availability for younger firms. Additional analysis to detect the regional determinants of the PCM of banks shows that the share of larger banks in each local credit market has a negative and significant impact on the PCM. In light of the existing empirical finding that smaller banks are more likely to provide relationship banking, these findings provide indirect evidence for the hypothesis that the intensity of relationship banking in each local credit market increases the PCM and this encourages banks to extend a loan to new firms so that they can pre-empt the opportunity to establish lending relationships that are expected to yield such quasi-rents.

本文言語English
ページ(範囲)1822-1838
ページ数17
ジャーナルJournal of Banking and Finance
36
6
DOI
出版ステータスPublished - 2012 6月
外部発表はい

ASJC Scopus subject areas

  • 財務
  • 経済学、計量経済学

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