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Intangible Assets and the Determinants of a Single Bank Relation of German SMEs

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  • Jarko Fidrmuc

    (Zeppelin University Friedrichshafen, Germany
    Mendel University in Brno, Czech Republic)

  • Philipp Schreiber

    (University of Mannheim, Germany)

  • Martin Siddiqui

    (Zeppelin University Friedrichshafen, Germany)

Abstract

We focus on the determinants and potential benefits of relationship banking. Based on the existing literature and the unique role intangible assets play regarding firms' capital structure, we test two hypotheses using rich data on firm-bank relationships in Germany. We show that firstly, a high share of intangible assets does not worsen the access of firms to debt financing. And secondly, firms with a high share of intangible assets are statistically significantly more likely to choose an exclusive and persistent bank relation.

Suggested Citation

  • Jarko Fidrmuc & Philipp Schreiber & Martin Siddiqui, 2018. "Intangible Assets and the Determinants of a Single Bank Relation of German SMEs," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 4(1), pages 5-30.
    • Handle: RePEc:men:journl:v:4:y:2018:i:1:p:5-30
    DOI: 10.11118/ejobsat.v4i1.130
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    More about this item

    Keywords

    relationship banking; SME; bank lending; capital structure; intangible assets;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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