Banking Relationship and Bank Financing: The Case of Vietnamese Small and Medium-sized Enterprises

Le Thi Bich Ngoc

doi:10.33301/2013.15.01.04

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VOL. 15 NO. 1 (2013) DOI: 10.33301/2013.15.01.04

Banking Relationship and Bank Financing: The Case of Vietnamese Small and Medium-sized Enterprises

Authors: Le Thi Bich Ngoc

Abstract:

Banking relationship is seen as a critical factor for Small and Medium-sized Enterprises (SMEs) in getting bank financing. In this study, I develop a model that examines the relative importance of inter-organizational and inter-personal banking relationships on firm bank financing, and report an empirical test from a sample of SMEs in the transition economy of Vietnam. The results support the central hypothesis that close banking relationships play an important role in getting bank financing. However, inter-organizational and inter-personal banking relationships are not equally important in helping SMEs access bank loans. The study provides theoretical and managerial implications.

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Banking Relationship and Bank Financing: The Case of Vietnamese Small and Medium-sized Enterprises

Abstract:

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