Article ID Journal Published Year Pages File Type
5089194 Journal of Banking & Finance 2014 16 Pages PDF
Abstract
This paper aims to investigate the determinants of collateral requirements for loans that are extended to small and medium-sized enterprises in less-developed countries. Our primary data source consists of the results from firms in Eastern Europe and Central Asia from the Business Environment and Enterprise Performance Survey, which is compiled by the World Bank and the European Bank for Reconstruction and Development. The results show that borrower-specific variables are more important than country-specific variables in determining collateral requirements on loan contracts. The strongest evidence in our paper emphasises the importance of borrower risk and loan cost in collateral determinants.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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