TY - JOUR

T1 - Loan managers’ trust and credit access for SMEs

AU - Fink, Matthias

PY - 2013/3

Y1 - 2013/3

N2 - Research on relationship lending pays only marginal attention to the role of loan managers' trust in the managers of SMEs. Trust literature suggests that trust reduces agency costs. Thus, trust is expected to be positively related to the amount of short-term credit granted and negatively related to SMEs' risk of being credit constrained. Results from six banks characterised by a German culture and three banks characterised by an Italian culture suggest that this is indeed the case: SMEs that enjoy a high level of trust from loan managers obtain more credit and are less credit constrained.

AB - Research on relationship lending pays only marginal attention to the role of loan managers' trust in the managers of SMEs. Trust literature suggests that trust reduces agency costs. Thus, trust is expected to be positively related to the amount of short-term credit granted and negatively related to SMEs' risk of being credit constrained. Results from six banks characterised by a German culture and three banks characterised by an Italian culture suggest that this is indeed the case: SMEs that enjoy a high level of trust from loan managers obtain more credit and are less credit constrained.

KW - Management studies

KW - Gründung

KW - Credit access

KW - Relationship lending

KW - SMEs

KW - Trust

KW - Entrepreneurship

UR - http://www.scopus.com/inward/record.url?scp=84872272278&partnerID=8YFLogxK

U2 - 10.1016/j.jbankfin.2012.10.023

DO - 10.1016/j.jbankfin.2012.10.023

M3 - Journal articles

VL - 37

SP - 927

EP - 936

JO - Journal of Banking and Finance

JF - Journal of Banking and Finance

SN - 0378-4266

IS - 3

ER -