Template-Type: ReDIF-Paper 1.0
Author-Name: Giovanni Ferri
Author-X-Name-First: Giovanni
Author-X-Name-Last: Ferri
Author-Email: g.ferri@lumsa.it
Author-Workplace-Name: LUMSA University 
Author-Name: Pierluigi Murro 
Author-X-Name-First: Pierluigi
Author-X-Name-Last: Murro
Author-Email: p.murro@lumsa.it
Author-Workplace-Name: LUMSA University 
Author-Name: Marco Pini 
Author-X-Name-First: Marco
Author-X-Name-Last: Pini
Author-Email: marco.pini3@gmail.com
Author-Workplace-Name: Unioncamere
Title: Credit Rationing and the Relationship Between Family Businesses and Banks in Italy

Abstract: We investigate whether family businesses (FBs) suffer stiffer credit rationing in the post-crisis Italian economy. FBs are, in fact, typically more opaque than other firms, possibly deterring bank lending to them. Moreover, regulatory changes may lead many banks to abandon relationship lending, weakening their ability to evaluate opaque firms. Using detailed firm data, our estimates reach nuanced conclusions. First, credit rationing is not more intense at FBs. However, it systematically intensifies if FBs engage in firm-bank arrangements less able to overcome information asymmetries either coupling with a main bank that uses transactional lending or diluting relationships across various banking partners.
Length: 26 pages
Creation-Date: 2018-03
Publication-Status: 
File-URL: https://repec.lumsa.it/wp/wpC24.pdf
File-Format: Application/pdf
Number: wpC24
Classification-JEL: D22; G32
Keywords: Family firms, Firm-bank relationship, Bank lending technologies, Credit Rationing
Handle: RePEc:lsa:wpaper:wpC24