Johanna Koeter-Kant

Publications (2)0 Total impact

• Source

  Available from: Ginés Hernández-Cánovas

  Article: SME Financing in Europe: Cross-Country Determinants of Debt Maturity

  Gines Hernandez-Canovas, Johanna Koeter-Kant
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  ABSTRACT: We examine the influence of cross country differences on debt maturity for small and medium size enterprises (SMEs) using a sample of 3366 SMEs from 19 European countries. We analyze a country's legal environment, institutional environment, banking structure and economic situation while controlling for firm specific characteristic. We find that SMEs in countries with high property rights that protect their creditors or enforce existing laws are more likely to obtain long-term debt. We also show evidence that banks seem to rely more on the legal, economic, and institutional determinants when determining the length of a loan agreement for micro firms than when granting loans to medium size firms.
  02/2006;
• Source

  Available from: Ginés Hernández-Cánovas

  Article: The European Institutional Environment and SME Relationship Lending: Should We Care?

  Gines Hernandez-Canovas, Johanna Koeter-Kant
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  ABSTRACT: This paper examines the impact of country specific determinants on multiple banking using a unique survey sample of 4959 SMEs from 19 European countries. Our data shows that (1) SMEs in countries with inefficient loan enforcement mechanisms are more likely to maintain multiple bank relationships, (2) the association between multiple banking and bank fragility is non-monotonous, being negative when the banking system is relatively stable and positive for high values of bank fragility, and (3) multiple banking is more likely for SMEs in countries with larger banking systems as well as smaller and less active securities markets. Overall, this evidence suggests that SMEs need multiple banking as a diversification mechanism to overcome expensive adverse selection that may arise within a country that suffers from an inefficient legal system and fragile banks, but also that movement towards a more market based financial system decreases the likelihood of multiple bank relationships for SMEs. These findings have important implications for policy makers in Europe when contemplating SME access to finance.
  VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics, Serie Research Memoranda. 01/2006;