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The Effects of Spatial Distance on Loan Pricing in Relationship Lending : Evidence from Germany

Title data

Zurek, Maximilian:
The Effects of Spatial Distance on Loan Pricing in Relationship Lending : Evidence from Germany.
In: Die Unternehmung. Vol. 72 (2018) Issue 3 . - pp. 212-228.
ISSN 0042-059X
DOI: https://doi.org/10.5771/0042-059X-2018-3-212

Abstract in another language

The spatial range between banks and their borrowers has commonly been considered as ambiguous in literature on borrower-lenderrelationships; On the one hand, a higher spatial separation increases informational costs, resulting in ceteris paribus higher interest rates charged by the lending bank. On the other hand, borrowers located closely to their lending banks are exposed to the local market power of the latter and therefore charged higher loan rates. With maintaining a single bank relationship, firms furthermore might occur liquidity risks. In this paper, the spatial distance between German firms and their banks is considered as impact on firms’ lending rate. Employing Heckman’s two-stage approach, there is strong evidence that distance has a positive impact on firms’ lending rates in relationship lending.

Further data

Item Type: Article in a journal
Refereed: Yes
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration I > Chair Business Administration I - Univ.-Prof. Dr. Klaus Schäfer
Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Business Administration
Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration I
Result of work at the UBT: Yes
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 15 Oct 2018 08:40
Last Modified: 15 Oct 2018 08:40
URI: https://eref.uni-bayreuth.de/id/eprint/46046