Business Credit Information Sharing and Default Risk of Private Firms

Dierkes, Maik; Erner, Carsten; Langer, Thomas; Nordén, Lars

doi:10.2139/ssrn.1958650

Cited by 25 publications

(38 citation statements)

References 14 publications

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“…In this context Dierkes, Erner, Langer and Norden (2013), state that companies in the segment of SME are smaller, more informationally opaque, riskier, and more dependent on trade credit and bank loans. According to Canales and Nanda (2012) small businesses, and particularly young small businesses, have little internal cash flow to finance their operations and are also associated with significant asymmetric information.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Significant Attributes of the Business Environment in Small and Meduim-Sized Enterprises

Belás¹,

Bartoš²,

Habánik³

et al. 2014

E&S

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Section: Theoretical Backgroundmentioning

confidence: 99%

Significant Attributes of the Business Environment in Small and Meduim-Sized Enterprises

Belás¹,

Bartoš²,

Habánik³

et al. 2014

E&S

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“…Small and medium-sized companies, as stated by Dierkes, Erner, Langer and Norden (2013), are riskier, more informational opaque and more dependent on bank loans and on trade credit. Canales and Nanda (2012) regard small businesses, especially young small businesses, as those that have insignifi cant internal cash fl ow to fi nance the operations.…”

Section: Introductionmentioning

confidence: 99%

Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment

Kozubíková¹,

Belás²,

Bilan³

et al. 2015

Economics &Amp; Sociology

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Abstract. Th e issue of business in the segment of small and medium-sized companies is a very actual area of scientifi c research today. Currently, great importance is given to research of personal and knowledge preconditions of people for doing business. Th e aim of this article was to examine the relationship between personality characteristics and approach to the perception and management of business risks. Based on the preferred personality qualities and knowledge the entrepreneurs have been included into two categories, namely they are artist-entrepreneurs and businessmen-laborers, also the diff erences in their entrepreneurial attitudes have been examined. Both groups of entrepreneurs in our research rate market risk as the most important risk, which was demonstrated by a decline in performance of companies during the crisis. Our results showed that there are significant diff erences in the attitudes of these two categories of entrepreneurs in approaching credit risk, where it was found out that the defi ned categories of business have diff erent approaches to knowledge of credit conditions of commercial banks. Th e results of our study have showed a high degree of confi dence of individual groups of entrepreneurs when evaluating their ability to manage fi nancial risks in the company and the high intensity of entrepreneurial optimism regardless of the personal characteristics of entrepreneurs.

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“…Notwithstanding the credit history reported by the credit bureau, Masood and Thapa (2012) found that the character of the borrower is also an important determinant of risk management. Dierkes et al (2013) also found that the higher the value of business credit information, the lower the realised default rates for financial institutions in the small business industry.…”

Section: Discussionmentioning

confidence: 90%

Financial institutions and the taxi-cab industry: an exploratory study in Canada

Gill

Biger

Dana

et al. 2014

IJESB

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Abstract:A current challenge taxi-cab owner/operators face in Canada is the lack of financing for taxi-cabs. This article examines business opportunities and lending risk; it also provides risk management strategies for financial institutions to manage the risk of lending to the taxi-cab industry. Members of the boards of directors and shareholders from the Canadian taxi-cab industry, Financial institutions and the taxi-cab industry 327and lenders from financial institutions that do not provide financing to taxi-cab owner/operators, were interviewed. Board members and shareholders were asked about their perceptions regarding business opportunity, risk, and their willingness to provide collateral for taxi-cab loans. Lenders of financial institutions were asked about their reasons for not providing taxi-cab loans. The findings of this study show that there is a reasonably attractive opportunity for financial institutions to offer financing for taxi-cab owner/operators. However, the findings also show that there are both systematic and unsystematic risks in lending to the taxi-cab industry. This offers recommendations on risk management strategies for Canadian lenders to mitigate the risk in lending to the Canadian taxi-cab industry. Our findings may be useful for new and existing financial/lending institutions, lenders, investors, and taxi-cab owner/operators.

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Business Credit Information Sharing and Default Risk of Private Firms

Cited by 25 publications

References 14 publications

Significant Attributes of the Business Environment in Small and Meduim-Sized Enterprises

Significant Attributes of the Business Environment in Small and Meduim-Sized Enterprises

Personal characteristics of entrepreneurs in the context of perception and management of business risk in the SME segment

Financial institutions and the taxi-cab industry: an exploratory study in Canada

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