Distance and Financial Connection: Dynamics in Private Firms’ Bank Loan Availability

References

• Agarwal, S., and R. Hauswald. 2010. Distance and private information in lending. Review of Financial Studies 23 (7):2757–2788. doi:10.1093/rfs/hhq001.
   Web of Science ®Google Scholar
• Alessandrini, P., M. Croci, and A. Zazzaro. 2005. The geography of banking power: The role of functional distance. BNL Quarterly Review 235:129–67.
   Google Scholar
• Bellucci, A., A. Borisov, G. Giombini, and A. Zazzaro. 2019. Collateralization and distance. Journal of Banking & Finance 100:205–17. doi:10.1016/j.jbankfin.2019.01.011.
   Web of Science ®Google Scholar
• Berger, A. N., and G. F. Udell. 2006. A more complete conceptual framework for SME finance. Journal of Banking & Finance 30 (11):2945–2966. doi:10.1016/j.jbankfin.2006.05.008.
   Web of Science ®Google Scholar
• Booth, J. R., and D. N. Deli. 1999. On executives of financial institutions as outside directors. Journal of Corporate Finance 5 (3):227–250. doi:10.1016/S0929-1199(99)00004-8.
   Google Scholar
• Brandt, L., and H. Li. 2003. Bank discrimination in transition economies: Ideology, information or incentives? Journal of Comparative Economics 31 (3):387–413. doi:10.1016/S0147-5967(03)00080-5.
   Web of Science ®Google Scholar
• Brevoort, K. P., and T. H. Hannan. 2006. Commercial lending and distance: Evidence from community reinvestment act data. Journal of Money, Credit and Banking 38 (8):1991–2012. doi:10.1353/mcb.2007.0000.
   Web of Science ®Google Scholar
• Byrd, D. T., and M. S. Mizruchi. 2005. Bankers on the board and the debt ratio of firms. Journal of Corporate Finance 11 (1–2):129–173. doi:10.1016/j.jcorpfin.2003.09.002.
   Web of Science ®Google Scholar
• Chen, S., and C. Ma. 2013. Corporate loan financing with the background of executive financial connection: An observation by A-share non-financial listed companies. Reform 4:111–19.
   Google Scholar
• Claessens, S., E. Feijen, and L. Laeven. 2008. Political connections and preferential access to finance: The role of campaign contributions. Journal of Financial Economics 88 (3):554–580. doi:10.1016/j.jfineco.2006.11.003.
   Web of Science ®Google Scholar
• Cotugno, M., S. Monferrà, and G. Sampagnaro. 2013. Relationship lending, hierarchical distance and credit tightening: Evidence from the financial crisis. Journal of Banking & Finance 37 (5):1372–1385. doi:10.1016/j.jbankfin.2012.07.026.
   Web of Science ®Google Scholar
• Degryse, H., and S. D. Ongena. 2005. Distance, lending relationships, and competition. The Journal of Finance 60 (1):231–266. doi:10.1111/j.1540-6261.2005.00729.x.
   Web of Science ®Google Scholar
• Deng, J., and Y. Zeng. 2011. Whether financial association can alleviate the financing constraints of private enterprises. Financial Research 8:78–92.
   Google Scholar
• Geng, C., D. Li, J. Sun, and C. Yuan. 2023. Functional distance and bank loan pricing: Evidence from the opening of high-speed railway in China. Journal of Banking & Finance 149:106810. doi:10.1016/j.jbankfin.2023.106810.
   Web of Science ®Google Scholar
• Giannetti, M., G. Liao, J. You, and X. Yu. 2021. The externalities of corruption: Evidence from entrepreneurial firms in China. Review of Finance 25 (3):629–667. doi:10.1093/rof/rfaa038.
   Web of Science ®Google Scholar
• Guo, F., J. Wang, F. Wang, Z. Cheng, T. Kong, and X. Zhang. 2020. Measuring China’s digital financial inclusion: Index compilation and spatial characteristics. China Economic Quarterly 19 (4):1401–18.
   Google Scholar
• Herpfer, C., A. Mjøs, and C. Schmidt. 2023. The causal impact of distance on bank lending. Management Science 69 (2):723–740. doi:10.1287/mnsc.2022.4346.
   Web of Science ®Google Scholar
• Hollander, S., and A. Verriest. 2016. Bridging the gap: The design of bank loan contracts and distance. Journal of Financial Economics 119 (2):399–419. doi:10.1016/j.jfineco.2015.09.006.
   Web of Science ®Google Scholar
• Hotelling, H. 1929. Stability in competition. The Economic Journal 39 (153):41–57. doi:10.2307/2224214.
   Google Scholar
• Knyazeva, A., and D. Knyazeva. 2012. Does being your bank’s neighbor matter? Journal of Banking & Finance 36 (4):1194–209. doi:10.1016/j.jbankfin.2011.11.011.
   Web of Science ®Google Scholar
• Lederer, P. J., and A. P. Hurter. 1986. Competition of firms: Discriminatory pricing and location. Econometrica 54 (3):623–40. doi:10.2307/1911311.
   Web of Science ®Google Scholar
• Li, H., L. Meng, Q. Wang, and L. A. Zhou. 2008. Political connections, financing and firm performance: Evidence from Chinese private firms. Journal of Development Economics 87 (2):283–299. doi:10.1016/j.jdeveco.2007.03.001.
   Web of Science ®Google Scholar
• Liu, L., Y. He, Z. Wang, and T. Cheng. 2015. Will financing constraints affect Chinese enterprises’ foreign direct investment? Theoretical and empirical analysis based on microcosmic perspective. Financial Research 8:124–40.
   Google Scholar
• Matthews, K., and W. Yin. 2019. Limited loan rate differentiation, guanxi, loan size and loan maturity in the Chinese bank credit market. Journal of the Asia Pacific Economy 24 (3):381–401. doi:10.1080/13547860.2019.1613745.
   Web of Science ®Google Scholar
• Mitchell, K., and M. D. Walker. 2007. Bankers on Boards, Financial constraints, and financial distress. SSRN Electronic Journal 1108473. http://ssrn.com/abstract=1108473.
   Google Scholar
• Nee, V. 1992. Organizational dynamics of market transition: Hybrid forms, property rights, and mixed economy in China. Administrative Science Quarterly 37 (1):1–27. doi:10.2307/2393531.
   Web of Science ®Google Scholar
• Ongena, S., and D. C. Smith. 2000. What determines the number of bank relationships? Cross-country evidence. Journal of Financial Intermediation 9 (1):26–56. doi:10.1006/jfin.1999.0273.
   Web of Science ®Google Scholar
• Petersen, M. A. 2004. Information: Hard and soft. Working Paper, Kellogg School of Management.
   Google Scholar
• Petersen, M. A., and R. G. Rajan. 1994. The benefits of lending relationships: Evidence from small business data. The Journal of Finance 49 (1):3–37. doi:10.1111/j.1540-6261.1994.tb04418.x.
   Web of Science ®Google Scholar
• Petersen, M. A., and R. G. Rajan. 2002. Does distance still matter? The information revolution in small business lending. The Journal of Finance 57 (6):2533–2570. doi:10.1111/1540-6261.00505.
   Web of Science ®Google Scholar
• Qian, X., D. Kong, and L. Du. 2019. Proximity, information, and loan pricing in internal capital markets: Evidence from China. China Economic Review 54:434–56. doi:10.1016/j.chieco.2019.02.005.
   Web of Science ®Google Scholar
• Salop, S. C. 1979. Monopolistic competition with outside goods. The Bell Journal of Economics 10 (1):141–156. doi:10.2307/3003323.
   Google Scholar
• Sisli-Ciamarra, E. 2012. Monitoring by affiliated bankers on board of directors: Evidence from corporate financing outcomes. Financial Management 41 (3):665–702. doi:10.1111/j.1755-053X.2012.01191.x.
   Web of Science ®Google Scholar
• Stein, J. C. 2002. Information production and capital allocation: Decentralized vs. hierarchical firms. The Journal of Finance 57 (5):1891–921. doi:10.1111/0022-1082.00483.
   Web of Science ®Google Scholar
• Sufi, A. 2007. Information asymmetry and financing arrangements: Evidence from syndicated loans. The Journal of Finance 62 (2):629–668. doi:10.1111/j.1540-6261.2007.01219.x.
   Web of Science ®Google Scholar
• Sussman, O., and J. Zeira. 2001. Banking and development. Cepr Discussion Papers.
   Google Scholar
• Wang, D., F. Du, and C. Marquis. 2019. Defending Mao’s dream: How politicians’ ideological imprinting affects firms’ political appointment in China. Academy of Management Journal 62 (4):1111–1136. doi:10.5465/amj.2016.1198.
   Web of Science ®Google Scholar
• Xu, K., and H. Da. 2015. Analysis on the influencing factors of loan distance of private enterprises in China. Theory and Practice of Finance and Economics 36 (2):9–15.
   Google Scholar
• Xu, Z., and Z. Zou. 2010. The allocation of loan approval power and the design of incentive mechanism under the framework of hard information and soft information: Implications for the financing of small and medium-sized enterprises. Financial Research 8:1–15.
   Google Scholar
• Yao, Y., and G. Dong. 2014. The development of small and medium-sized banks and the financing constraints of small and medium-sized enterprises: An empirical study from the perspective of optimal financial structure theory of new structural economics. Financial and Economic Research 40 (1):105–15.
   Google Scholar
• Zhou, W. 2013. Political connections and entrepreneurial investment: Evidence from China’s transition economy. Journal of Business Venturing 28 (2):299–315. doi:10.1016/j.jbusvent.2012.05.004.
   Web of Science ®Google Scholar
• Zhou, Y. 2023. Politically influenced bank lending. Journal of Banking & Finance 157:107020. doi:10.1016/j.jbankfin.2023.107020.
   Web of Science ®Google Scholar