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How do banks assess entrepreneurial competence? The role of voluntary information disclosure

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.author Moro, A.
dc.contributor.author Fink, M.
dc.contributor.author Kautonen, T.
dc.date.accessioned 2015-06-09T09:01:00Z
dc.date.available 2015-06-09T09:01:00Z
dc.date.issued 2014
dc.identifier.citation Moro, A. & Fink, M. & Kautonen, T. 2014. How do banks assess entrepreneurial competence? The role of voluntary information disclosure. International Small Business Journal. Volume 32, Issue 5. 525-544. ISSN 0266-2426 (printed). DOI: 10.1177/0266242612458444. en
dc.identifier.issn 0266-2426 (printed)
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/16537
dc.description.abstract This research adds to the literature on relationship lending in the small business context by discussing the roles of entrepreneurial competence and voluntarily disclosed information as determinants of credit access. More specifically, we propose that the loan manager’s evaluation of the information voluntarily disclosed by the entrepreneur is an important complement to publicly available financial data and soft information collected through observation and third parties in framing the loan manager’s perception of the entrepreneur’s competence. Further, we argue that banks charge lower interest rates if the loan manager perceives the entrepreneur to be competent. Econometric analysis based on 433 bank-firm relationships supports these hypothesised relationships. The results imply that entrepreneurs need to communicate their competence effectively to loan managers, and that banks should utilise their loan managers’ personal evaluations as inputs to lending decisions. en
dc.format.extent 525-544
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher SAGE Publications en
dc.relation.ispartofseries International Small Business Journal en
dc.relation.ispartofseries Volume 32, Issue 5
dc.rights © 2014 SAGE Publications. This is the post print version of the following article: Moro, A. & Fink, M. & Kautonen, T. 2014. How do banks assess entrepreneurial competence? The role of voluntary information disclosure. International Small Business Journal. Volume 32, Issue 5. 525-544. ISSN 0266-2426 (printed). DOI: 10.1177/0266242612458444, which has been published in final form at http://isb.sagepub.com/content/32/5/525.short. en
dc.subject.other Entrepreneurship en
dc.subject.other Finance en
dc.title How do banks assess entrepreneurial competence? The role of voluntary information disclosure en
dc.type A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä fi
dc.description.version Peer reviewed en
dc.rights.holder SAGE Publications
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Johtamisen laitos fi
dc.contributor.department Department of Management Studies en
dc.subject.keyword SME en
dc.subject.keyword competence en
dc.subject.keyword interest rate en
dc.subject.keyword lending en
dc.subject.keyword bank en
dc.subject.keyword trust en
dc.identifier.urn URN:NBN:fi:aalto-201506063176
dc.type.dcmitype text en
dc.identifier.doi 10.1177/0266242612458444
dc.contributor.lab Entrepreneurship en
dc.contributor.lab Yrittäjyys fi
dc.type.version Post print en


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