Does Distance Still Matter? The Information Revolution in Small Business Lending

By Mitchell A. Petersen, Raghuram G. Rajan. 2002

2,326 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/e10bb8ba70f9976b6a64956f861540a29afd5321

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Citations in the corpus

Competition and the Structure of Vertical Relationships in Capital Markets (2010, neutral): “…the demand for secrecy may be higher, the data reveal greater exclusivity in relatively more concentrated industries, in industries that are relatively more dependent on intangibles, and in industries characterized by “soft” information (see Petersen and Rajan (2002) and Berger et al. (2005))).”
Competition and Strategic Information Acquisition in Credit Markets (2006, neutral): “In recent work, Petersen and Rajan (2002) argue that increased access to information has eroded some of the geographic boundaries that have previously defined banking markets.”
Distance and Private Information in Lending (2010, background): “Closest to our work is the study by Petersen and Rajan (2002), who first pointed out the local nature of the soft information necessary for credit decisions , and Degryse and Ongena (2005), who show on the basis of Belgian data that distance affects loan transactions through spatial price…”
When the Cat's Away the Mice will Play: Does Regulation at Home Affect Bank Risk Taking Abroad? (2013, neutral): “For example, Petersen and Rajan (2002) find that the median distance between a firm and its main bank over the 1973- 1993 period was only four miles; in Degryse and Ongena’s (2005) sample, the median distance between a firm and it’s main bank is 2.25 kilometers (1.6 miles); and in Agarwal and…”
The Impact of Competition on Bank Orientation (2007, neutral): “…corroborate that Relationship Banking and Distance are seemingly not driven jointly by an omitted variable and that Distance (marked as a complement and not a substitute to Relationship Banking) may not proxy for the intensity and ease of informational flows as in Petersen and Rajan (2002).”
Local financial development and growth (2009, neutral): “Petersen and Rajan (2002), for instance, document that even in the United States, the distance between small business borrowers and their banks is less than 20 miles (35 km) for over 75% of loans to these firms.”
Do Small Businesses Still Prefer Community Banks (2013, background): “Similarly, there has been research showing that lending distances have increased over time, with more small businesses borrowing from nonlocal lenders (e.g., Petersen and Rajan 2002, Hannan 2003, Brevoort and Hannan 2006).”