Market- vs. Bank-Based Financial Systems: Do Rights and Regulations Really Matter?

Ergungor, O. Emre

doi:10.2139/ssrn.263746

Cited by 30 publications

(40 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…While this issue has not been examined empirically, there is evidence that legal environments may be associated with relationship-based finance in the context of bank-based versus capital-markets-based financial systems. That is, weaker legal systems may have more bank-based rather than capital-markets-based financing (Rajan and Zingales, 2003;Ergungor, 2004). By extension, this argument may apply to relationship lending versus the transactions technologies.…”

Section: The Legal Judicial and Bankruptcy Environmentsmentioning

confidence: 99%

A more complete conceptual framework for SME finance

Berger

Udell

2006

Journal of Banking & Finance

1,474

1,006

View full text Add to dashboard Cite

Section: The Legal Judicial and Bankruptcy Environmentsmentioning

confidence: 99%

A more complete conceptual framework for SME finance

Berger

Udell

2006

Journal of Banking & Finance

1,474

1,006

View full text Add to dashboard Cite

“…To control for this possibility, we introduce the ratio of stock market capitalization to bank credit, which is the most commonly employed measure of financial system orientation (Ergungor, 2004). A negative coefficient on this variable would imply that as economies mature and the financing pattern of firm becomes more market-oriented, reliance on bank debt declines, irrespective of firm size groups.…”

Section: The Empirical Strategymentioning

confidence: 99%

Bank Debt Use and Firm Size: Indian Evidence

Ghosh

2006

Small Bus Econ

View full text Add to dashboard Cite

The paper employs a sample of listed Indian manufacturing firms over the period 1995–2004 to examine the factors influencing the concentration of bank debt in total debt. The results indicate that the factors vary by firm size. Small to medium-sized firms have a high concentration of bank debt. The results support the reputation view that firms face differential debt choice as they grow larger. When evaluating bank regulations, policymakers need to consider the importance of the reputation-building service which banks provide to businesses. Copyright Springer 2007bank debt, small firms, reputation, India, G21, G32, E44,

show abstract

“…4 Multiple banking may also serve banks to increase their bargaining power. According to Ergungor (2004), firms cannot commit themselves to not exploit the lender and banks cannot trust courts for a fair solution of the conflict when creditor rights are poor. To enforce contracts without court intervention banks can credibly threaten the borrower with withholding valuables services such as loans and credits.…”

Section: Datamentioning

confidence: 99%