TY - JOUR
T1 - Does distance still matter? The information revolution in small business lending
AU - Petersen, Mitchell A.
AU - Rajan, Raghuram G.
PY - 2002
Y1 - 2002
N2 - The distance between small firms and their lenders is increasing, and they are communicating in more impersonal ways. After documenting these systematic changes, we demonstrate they do not arise from small firms locating differently, consolidation in the banking industry, or biases in the sample. Instead, improvements in lender productivity appear to explain our findings. We also find distant firms no longer have to be the highest quality credits, indicating they have greater access to credit. The evidence indicates there has been substantial development of the financial sector, even in areas such as small business lending.
AB - The distance between small firms and their lenders is increasing, and they are communicating in more impersonal ways. After documenting these systematic changes, we demonstrate they do not arise from small firms locating differently, consolidation in the banking industry, or biases in the sample. Instead, improvements in lender productivity appear to explain our findings. We also find distant firms no longer have to be the highest quality credits, indicating they have greater access to credit. The evidence indicates there has been substantial development of the financial sector, even in areas such as small business lending.
UR - http://www.scopus.com/inward/record.url?scp=0012949171&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0012949171&partnerID=8YFLogxK
U2 - 10.1111/1540-6261.00505
DO - 10.1111/1540-6261.00505
M3 - Article
AN - SCOPUS:0012949171
SN - 0022-1082
VL - 57
SP - 2533
EP - 2570
JO - Journal of Finance
JF - Journal of Finance
IS - 6
ER -
