Karolin Kirschenmann's Article Credit Rationing in Small Business Bank Relationships Accepted for Journal of Financial Intermediation
The article "Credit rationing in small firm-bank relationships" is published at the Journal of Financial Intermediation
The article "Credit rationing in small firm-bank relationships" focuses on credit rationing in small firm-bank relationships by using a unique data set of matched loan applications and contracts. The author establishes the degree of credit rationing by relating a firm's requested loan amount to the bank's granted amount. In line with theoretical predictions, credit rationing is higher for opaque than transparent firms at the beginning of their bank relationships and decreases over time for both. After testing for several alternative explanations, the results suggest that information and incentive problems explain the observed credit rationing and its dynamics.
- Published:
- Updated:
Read more news
Get to know us: Ville Alopaeus
Ville Alopaeus has worked as a professor at Aalto University School of Chemical Engineering since 2008. Researching separation processes and process modelling, Alopaeus aims to contribute to the transition towards a renewable energy and materials environment.
Time off work - the biggest reason why fewer women are CEOs
Women are underrepresented in CEO positions partly because they spend more time outside of the labour market during the years when their careers are most likely to take off. Women also less often work in sales or production, which are common pathways for CEO recruitment.
A summer internship with a twist: the story of prize-winning student Netta Karjalainen
Read the story of prize-winning Bachelor student’s summer internship at Aalto