Loan officers and soft information production

According to the current paradigm of relationship lending in small business lending, loan officers produce soft information about their small- and medium-sized enterprises borrowers. We examine this common assumption by directly measuring soft information and testing how can loan officer accumulate...

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Autores principales:	Loukil Sahar, Jarboui Anis
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2016
Materias:	relationship lending small- and medium-sized enterprises soft information Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/9aa91cea299e4568b39f58c6b37a8bc2
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spelling	oai:doaj.org-article:9aa91cea299e4568b39f58c6b37a8bc22021-12-02T14:07:32ZLoan officers and soft information production2331-197510.1080/23311975.2016.1199521https://doaj.org/article/9aa91cea299e4568b39f58c6b37a8bc22016-12-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2016.1199521https://doaj.org/toc/2331-1975According to the current paradigm of relationship lending in small business lending, loan officers produce soft information about their small- and medium-sized enterprises borrowers. We examine this common assumption by directly measuring soft information and testing how can loan officer accumulate this type of information. We used a data-set on Tunisian small businesses via a specially designed questionnaire addressed to loan officers and a data based on lines of credit files. We find that on balance loan officers play an important role in producing soft information. In fact, the specificity of loan officer, direct contact with the manager, and regular visit to the firm contribute to more information production, while frequent loan officer turnover hinders this mission. To further pursue the validity of our empirical methodology, we test whether the production of soft information by loan officers benefits borrowers. Our results confirm that besides soft information, audited financial statements improve loan contract terms while public banks are more devoted to relax financing constraints.Loukil SaharJarboui AnisTaylor & Francis Grouparticlerelationship lendingsmall- and medium-sized enterprisessoft informationBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 3, Iss 1 (2016)
institution	DOAJ
collection	DOAJ
language	EN
topic	relationship lending small- and medium-sized enterprises soft information Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	relationship lending small- and medium-sized enterprises soft information Business HF5001-6182 Management. Industrial management HD28-70 Loukil Sahar Jarboui Anis Loan officers and soft information production
description	According to the current paradigm of relationship lending in small business lending, loan officers produce soft information about their small- and medium-sized enterprises borrowers. We examine this common assumption by directly measuring soft information and testing how can loan officer accumulate this type of information. We used a data-set on Tunisian small businesses via a specially designed questionnaire addressed to loan officers and a data based on lines of credit files. We find that on balance loan officers play an important role in producing soft information. In fact, the specificity of loan officer, direct contact with the manager, and regular visit to the firm contribute to more information production, while frequent loan officer turnover hinders this mission. To further pursue the validity of our empirical methodology, we test whether the production of soft information by loan officers benefits borrowers. Our results confirm that besides soft information, audited financial statements improve loan contract terms while public banks are more devoted to relax financing constraints.
format	article
author	Loukil Sahar Jarboui Anis
author_facet	Loukil Sahar Jarboui Anis
author_sort	Loukil Sahar
title	Loan officers and soft information production
title_short	Loan officers and soft information production
title_full	Loan officers and soft information production
title_fullStr	Loan officers and soft information production
title_full_unstemmed	Loan officers and soft information production
title_sort	loan officers and soft information production
publisher	Taylor & Francis Group
publishDate	2016
url	https://doaj.org/article/9aa91cea299e4568b39f58c6b37a8bc2
work_keys_str_mv	AT loukilsahar loanofficersandsoftinformationproduction AT jarbouianis loanofficersandsoftinformationproduction
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Loan officers and soft information production

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