1 option
Communication within Banking Organizations and Small Business Lending / Ross Levine, Chen Lin, Qilin Peng, Wensi Xie.
- Format:
- Book
- Author/Creator:
- Levine, Ross.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w25872.
- NBER working paper series no. w25872
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2019.
- Summary:
- We investigate how communication within banks affects small business lending. Using travel time between a bank's headquarters and its branches to proxy for the costs of communicating soft information, we exploit shocks to these travel times to evaluate the impact of within bank communication costs on small business loans. Consistent with Stein's (2002) model of the transmission of soft information across a bank's hierarchies, we find that reducing headquarters-branch travel time boosts small business lending in the branch's county. Several extensions suggest that new airline routes facilitate the transmission of soft information, boosting small firm lending.
- Notes:
- Print version record
- May 2019.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.