Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/96225
Authors: 
Kim, Grace
Year of Publication: 
2011
Citation: 
[Journal:] The Journal of Entrepreneurial Finance (JEF) [ISSN:] 1551-9570 [Volume:] 15 [Year:] 2011 [Issue:] 2 [Pages:] 91-106
Abstract: 
When credit application experiences are examined, minority-owned small firms are not the discouraged borrowers that credit outcome studies generally suggest. This paper examines repeated application for credit by small firms. Univariate statistical analysis reveals that persistence is necessary but insufficient for minority firms to be successful credit applicants. At the same time, minority-owned firms overall were more likely than white-owned firms to make repeated attempts to obtain credit, though successful minority applicants actually required fewer applications than their white cohorts. Multivariate regression also finds that different firm, lender, banking relationship, and loan characteristics affect the continued search for credit by minority- and white-owned small firms.
Subjects: 
minority
small firms
credit search
discouraged borrower
persistence
JEL: 
G20
M13
M20
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.