Bruns, V. and Fletcher, M. (2008) Banks' risk assessment of Swedish SMEs. Venture Capital, 10(2), pp. 171-194. (doi: 10.1080/13691060801946089)
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Abstract
Building on the literatures on asymmetric information and risk taking, this paper applies conjoint experiments to investigate lending officers' probabilities of supporting credit to established or existing SMEs. Using a sample of 114 Swedish lending officers, we test hypotheses concerning how information on the borrower's ability to repay the loan; alignment of risk preferences; and risk sharing affect their willingness to grant credit. Results suggest that features that reduce the risk to the bank and shift the risk to the borrower have the largest impact. The paper highlights the interaction between factors that influence the credit decision. Implications for SMEs, banks and research are discussed.
Item Type: | Articles |
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Additional Information: | This is an electronic version of an article published in Venture Capital. Venture Capital is available online at: http://www.informaworld.com/smpp/title~db=all~content=t713798069 |
Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Fletcher, Professor Margaret |
Authors: | Bruns, V., and Fletcher, M. |
Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
College/School: | College of Social Sciences > Adam Smith Business School > Management |
Journal Name: | Venture Capital |
Publisher: | Taylor and Francis |
ISSN: | 1369-1066 |
ISSN (Online): | 1464-5343 |
Copyright Holders: | Copyright © 2008 Taylor and Francis |
First Published: | First published in Venture Capital 10(2):171-194 |
Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher |
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