TBU Publications
Repository of TBU Publications

Determinants of loan maturity in small business lending

DSpace Repository

Show simple item record

dc.title Determinants of loan maturity in small business lending en
dc.contributor.author Rahman, Ashiqur
dc.contributor.author Rózsa, Zoltán
dc.contributor.author Kozubíková, Ludmila
dc.contributor.author Cepel, Martin
dc.relation.ispartof Journal of International Studies
dc.identifier.issn 2071-8330 Scopus Sources, Sherpa/RoMEO, JCR
dc.date.issued 2017
utb.relation.volume 10
utb.relation.issue 2
dc.citation.spage 104
dc.citation.epage 118
dc.type article
dc.language.iso en
dc.publisher Centre of Sociological Research
dc.identifier.doi 10.14254/2071-8330.2017/10-2/7
dc.relation.uri http://www.jois.eu/?335,en_determinants-of-loan-maturity-in-small-business-lending
dc.subject asymmetric information en
dc.subject collateral en
dc.subject concentration en
dc.subject distance en
dc.subject female en
dc.subject loan maturity en
dc.subject small and medium enterprises en
dc.description.abstract This paper investigates the determinants of loan maturity of small and medium enterprises (SMEs) in the context of Visegrad countries: Czech Republic, Slovak Republic, Poland, and Hungary. The data of instead of for this paper was obtained from the Business Environment and Enterprise Performance Survey (BEEPS), which is a joint project of the European Bank for Reconstruction and Development and the World Bank. By using a binary logistic model, we have found that loan maturity is shorter for older and mature firms, firms owned by female and firms experiencing a shortage of liquidity. At the same time, we have also found that firms having concentrated ownership structure and more tangible assets can borrow for a longer period. In addition to that, we have found evidence that loan maturity is longer for the firms located closer to a bank branch. We also provide empirical support for the assumption that bank low competition is associated with longer maturity. From the obtained results, we may recommend SMEs to borrow from banks that are within their vicinity since this may increase the maturity of loans. Policy makers are recommended to implement policies so that to alleviate gender-related discrimination and take initiatives to moderate the level of competition at this market. © Foundation of International Studies and CSR, 2017. en
utb.faculty Faculty of Management and Economics
dc.identifier.uri http://hdl.handle.net/10563/1007509
utb.identifier.obdid 43876605
utb.identifier.scopus 2-s2.0-85029937559
utb.source j-scopus
dc.date.accessioned 2017-10-16T14:43:40Z
dc.date.available 2017-10-16T14:43:40Z
dc.rights Attribution 3.0 Unported
dc.rights.uri https://creativecommons.org/licenses/by/3.0/
dc.rights.access openAccess
utb.contributor.internalauthor Rahman, Ashiqur
utb.contributor.internalauthor Kozubíková, Ludmila
utb.fulltext.affiliation Ashiqur Rahman Tomas Bata University in Zlin, Zlin, Czech Republic Email: rahman@fame.utb.cz Zoltan Rozsa School of Economics and Management in Public Administration in Bratislava, Bratislava, Slovak Republic Email: zoltan.rozsa@vsemvs.sk Ludmila Kozubikova Tomas Bata University in Zlin, Zlin, Czech Republic Email: kozubikova@fame.utb.cz Martin Cepel LIGS University LLC, Honolulu, Hawaii, USA Email: cepel@benzinol.com
utb.fulltext.dates Received: November, 2016 1st Revision: January, 2017 Accepted: May, 2017
utb.fulltext.references Adam, T., & Goyal, V. K. (2008). The investment opportunity set and its proxy variables. Journal of Financial Research, 31(1), 41-63. http://dx.doi.org/10.2139/ssrn.298048 Alesina, A. F., Lotti, F., & Mistrulli, P. E. (2013). Do women pay more for credit? Evidence from Italy. Journal of the European Economic Association, 11(suppl_1), 45-66. Alonso, D. B., Androniceanu, A., & Georgescu, I. (2016). Sensitivity and vulnerability of European countries in time of crisis based on a new approach to data clustering and curvilinear analysis. Administratie si Management Public, (27), 46-61. Androniceanu, A., & Popescu, C. R. (2017). An Inclusive Model for an Effective Development of the Renewable Energies Public Sector. Administratie si Management Public, (28), 81-96. Ang, J. S., Lin, J. W., & Tyler, F. (1995). Evidence on the lack of separation between business and personal risks among small businesses. The Journal of Entrepreneurial Finance, 4(2), 197-210. Awartani, B., Belkhir, M., Boubaker, S., & Maghyereh, A. (2016). Corporate debt maturity in the MENA region: Does institutional quality matter?. International Review of Financial Analysis, 46, 309-325. http://dx.doi.org/10.1016/j.irfa.2015.10.002 Ayyagari, M., Beck, T., & Demirguc-Kunt, A. (2007). Small and medium enterprises across the globe. Small business economics, 29(4), 415-434. https://doi.org/10.1007/s11187-006-9002- Beck, T., Demirgüç-Kunt, A., Laeven, L., & Maksimovic, V. (2006). The determinants of financing obstacles. Journal of International Money and Finance, 25(6), 932-952. https://doi.org/10.1016/j.jimonfin.2006.07.005 Belás, J., & Polách, J. (2011). Economic Imbalance and Regulatory Traps in Banking Sector. Finance and the Performance of Firms in Science, Education and Practice 2011. ISBN 978-80-7454-020-2 Belas, J., & Sopkova, G. (2016). A Model of Entrepreneurial Orientation. Transformation in Business & Economics, 15(38B), 630-645. Belás, J., & Sopková, G. (2016). Significant determinants of the competitive environment for SMEs in the context of financial and credit risks. Journal of International Studies, 9(2), 139-149. doi: 10.14254/2071-8330.2016/9-2/10 Belás, J., Machácek, J., Bartos, P., Hlawiczka, R., & Hudáková, M. (2014). Business Risks and the Level of Entrepreneurial Optimism among SME in the Czech and Slovak Republic. Journal of competitiveness, 6(2), 30-41. Bellucci, A., Borisov, A., & Zazzaro, A. (2010). Does gender matter in bank–firm relationships? Evidence from small business lending. Journal of Banking & Finance, 34(12), 2968-2984. Berger, A. N., & Udell, G. F. (2002). Small business credit availability and relationship lending: The importance of bank organisational structure. The economic journal, 112(477), 32-53. https://doi.org/10.1111/1468-0297.00682 Berger, A. N., ESPINOSA‐VEGA, M. A., Frame, W. S., & Miller, N. H. (2005). Debt maturity, risk, and asymmetric information. The Journal of Finance, 60(6), 2895-2923. https://doi.org/10.5089/9781451862201.001 Besanko, D., & Thakor, A. (1987). Collateral and rationing: sorting equilibria in monopolistic and competitive credit markets. International Economic Review, 28, pp. 671-689. https://doi.org/10.2307/2526573 Bonini, S., Dell'Acqua, A., Fungo, M., & Kysucky, V. (2016). Credit market concentration, relationship lending and the cost of debt. International Review of Financial Analysis, 45, 172-179. https://doi.org/10.1016/j.irfa.2016.03.013 Boot, A. W., & Thakor, A. V. (1994). Moral hazard and secured lending in an infinitely repeated credit market game. International Economic Review, 35, 899-920. https://10.2307/2527003 Boyer, T., & Blazy, R. (2014). Born to be alive? The survival of innovative and non-innovative French micro-start-ups. Small Business Economics, 42(4), 669-683. https://doi.org/10.1007/s11187-013-9522-8 Cheng, S. (2015). Potential lending discrimination? Insights from small business financing and new venture survival. Journal of Small Business Management, 53(4), 905-923. https://doi.org/10.1111/jsbm.12112 Cipovová, E., & Belás, J. (2012, November). Impacts of selected methods of credit risk management on bank performance. In Proceedings of the 8th European Conference on Management, Leadership and Governance (Vol. 30, pp. 465- 473). DeYoung, R., Glennon, D., & Nigro, P. (2008). Borrower–lender distance, credit scoring, and loan performance: Evidence from informational-opaque small business borrowers. Journal of Financial Intermediation, 17(1), 113-143. Gavurova, B., Virglerova, Z., & Janke, F. (2017). Trust and a Sustainability of the macroeconomic growth Insights from dynamic perspective. Journal of Security and Sustainability Issues, 6(4), 637-648. https://doi.org/10.9770/jssi.2017.6.4(9) Godlewski, C. J., & Weill, L. (2011). Does collateral help mitigate adverse selection? A cross-country analysis. Journal of Financial Services Research, 40(1-2), 49-78. https://doi.org/10.1007/s10693-010-0099-y. Gompers, P. A. (1995). Optimal investment, monitoring, and the staging of venture capital. The journal of finance, 50(5), 1461-1489. https://doi.org/10.2307/2329323. Goyal, V. K., & Wang, W. (2013). Debt maturity and asymmetric information: Evidence from default risk changes. Journal of Financial and Quantitative Analysis, 48(3), 789-817. https://doi.org/10.1017/s0022109013000240. Hainz, C., Weill, L., & Godlewski, C. J. (2013). Bank competition and collateral: Theory and evidence. Journal of Financial Services Research, 44(2), 131-148. DOI 10.1007/s10693-012-0141-3. Hanedar, E. Y., Broccardo, E., & Bazzana, F. (2014). Collateral requirements of SMEs: The evidence from less- developed countries. Journal of banking & finance, 38, 106-121. https://doi.org/10.1016/j.jbankfin.2013.09.019 Hernández-Cánovas, G., & Koëter-Kant, J. (2008). Debt maturity and relationship lending: an analysis of European SMEs. International Small Business Journal, 26(5), 595-617. https://doi.org/10.1177/0266242608094031 Hernández-Cánovas, G., & Koëter-Kant, J. (2011). SME financing in Europe: Cross-country determinants of bank loan maturity. International Small Business Journal, 29(5), 489-507. https://doi.org/10.1177/0266242611402569 Heyman, D., Deloof, M., & Ooghe, H. (2008). The financial structure of private held Belgian firms. Small Business Economics, 30(3), 301-313. https://doi.org/10.1007/s11187-006-931-0 Hsiao, Y. J., & Chou, N. T. (2015). Owner Characteristics and the Cost of Bank Loan: Evidence from Small Business. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2562981 Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360. https://doi.org/10.1016/0304-405x(76)90026-x Jimenez, G., Salas, V., & Saurina, J. (2006). Determinants of collateral. Journal of financial economics, 81(2), 255-281. https://doi.org/10.1016/j.fineco.2005.06.003 Jiménez, G., Salas, V., & Saurina, J. (2009). Organizational distance and use of collateral for business loans. Journal of Banking & Finance, 33(2), 234-243. https://doi.org/10.1016/j.bankfin.2008.07.015 Jurevičienė, D. & Skvarciany, V. (2016). Camels+t approach for banks’ assessment: evidence from the Baltics. Entrepreneurship and Sustainability Issues, 4(2), 159-173. http://dx.doi.org/10.9770/jesi.2016.4.2(4) Kazmierczyk, J., & Aptacy, M. (2016). The management by objectives in banks: the Polish case. Entrepreneurship and Sustainability Issues, 4(2), 146-158. http://dx.doi.org/10.9770/jesi.2016.4.2(3) Ključnikov, A., & Belás, J. (2016). Approaches of Czech entrepreneurs to debt financing and management of credit risk. Equilibrium. Equilibrium. Quarterly Journal of Economics and Economic Policy, 11(2), 343-365. doi: http://dx.doi.org/10.12775/EQUIL.2016.016. Ključnikov, A., Kozubíková, L., & Sopková, G. (2017). The Payment Discipline of Small and Medium-sized Enterprises. Journal of Competitiveness, 8(2), 45-61. DOI: 10.7441/joc.2017.02.04 Kot, S., Meyer, N., & Broniszewska, A. (2016). A Cross-Country Comparison of the Characteristics of Polish and South African Women Entrepreneurs. Economics & Sociology, 9(4), 207-221. doi: 10.14254/2071-789X.2016/9-4/13 Leon, F. (2015). Does bank competition alleviate credit constraints in developing countries?. Journal of Banking & Finance, 57, 130-142. https://doi.org/10.1016/j.bankfin.2015.04.005 Magri, S. (2010). Debt maturity choice of nonpublic Italian firms. Journal of Money, Credit and Banking, 42(2‐3), 443-463. https://doi.org/10.1111/j.1538-4616.2009.00294.x Myers, S. C. (1977). Determinants of corporate borrowing. Journal of financial economics, 5(2), 147-175. https://doi.org/10.1016/0304-405x(77)90015-0 Ortiz-Molina, H., & Penas, M. F. (2008). Lending to small businesses: The role of loan maturity in addressing information problems. Small Business Economics, 30(4), 361-383. https://doi.org/10.1007/s11187-007-9053-2 Pavelka L., & Krchnak P. (2015). Competitive advantages of internationally operating companies. Ekonomicko-manazerske spektrum, 9(2), 2-6. Petersen, M. A., & Rajan, R. G. (1995). The effect of credit market competition on lending relationships. The Quarterly Journal of Economics, 110(2), 407-443. https://doi.org/10.2307/2118445 Petersen, M. A., & Rajan, R. G. (2002). Does distance still matter? The information revolution in small business lending. The journal of Finance, 57(6), 2533-2570. https://doi.org/10.1111/1540-6261.00505 Pettit, R. R., & Singer, R. F. (1985). Small business finance: a research agenda. Financial management, 47-60. https://doi.org/10.2307/3665059 Pietrasieński, P., & Ślusarczyk, B. (2015). Internationalization of small and medium enterprises: empirical research review on barriers to entry into foreign markets. Polish Journal of Management Studies, 11(1), 113-123. Rahman, A., Rahman, M. T., & Kljucnikov, A. (2016). Collateral and SME financing: an analysis across bank size and bank ownership types. Journal of International Studies, 9(2), 112-126. Sara, C., & Peter, R. (1998). The financing of male–and female–owned businesses. Entrepreneurship & Regional Development, 10(3), 225-242. https://doi.org/10.1080/08985629800000013 Scherr, F. C., & Hulburt, H. M. (2001). The debt maturity structure of small firms. Financial management, 85-111. Sinicaková, M., & Gavurová, B. (2017). Single Monetary Policy versus Macroeconomic Fundamentals in Slovakia. Ekonomický časopis (Journal of Economics), 2(65), 158-172. Sinicakova, M., Sulikova, V., Gavurova, B. (2017). Twin deficits threat in the European union. E & M Economics and Management, 20(1), 144-156. https://doi.org/10.15240/ tul /001/ 2017-1-010 Spoz, A. (2014). Significance of the EU Funds in Investments of Small and Medium-Sized Enterprises. Oeconomia Copernicana, 5(4), 61-74. doi: http://dx.doi.org/10. 12775/OeC.2014.027. Stehell V., Vrbka J. & Rowland Z. (2016). Using neural networks for determining creditworthiness for the purpose of providing bank loan on the example of construction companies in south region of Czech republic. Ekonomicko-manazerske spektrum, 10(2), 62-75. Thakor, A. V., & Udell, G. F. (1991). Secured lending and default risk: equilibrium analysis, policy implications and empirical results. The Economic Journal, 101(406), 458-472. https://doi.org/10.2307/2233552 Voordeckers, W., & Steijvers, T. (2006). Business collateral and personal commitments in SME lending. Journal of Banking & Finance, 30(11), 3067-3086. https://doi.org/j.bankfin.2006.05.003.
utb.fulltext.sponsorship Ashiqur Rahman is thankful to the Internal Grant Agency of FaME TBU No. IGA/FaME/2017/010: Financial Constraints on Economic Activities, for financial support to carry out this research.
utb.scopus.affiliation Tomas Bata University in Zlin, Zlin, Czech Republic; School of Economics and Management in Public Administration in Bratislava, Bratislava, Slovakia; LIGS University LLC, Honolulu, HI, United States
Find Full text

Files in this item

Show simple item record

Attribution 3.0 Unported Except where otherwise noted, this item's license is described as Attribution 3.0 Unported