Skip to main content
SpringerLink
Log in

Banking Concentration and Firm Growth: The Impact of Size, Location and Financial Crisis

  • Conference paper
  • First Online:
Advances in Time Series Data Methods in Applied Economic Research (ICOAE 2018)

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Included in the following conference series:

  • 1014 Accesses

Abstract

Using conditional quantile regressions for a panel of listed firms from euro-area countries in the 2005–2011 period, we explore the role of banking concentration in firm growth between micro and larger firms; pre-crisis and post-crisis years; periphery and core countries. The results provide evidence on the differentiated role of banking concentration in firms exhibiting different growth rates, depending at the same time on firm size, firm location and the financial crisis.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

Notes

  1. 1.

    Applying also VIF tests confirms the absence of any multicollinearity problems.

  2. 2.

    For a more detailed and intuitive explanation of conditional quantile regression models see Hao and Naiman (2007) and Capasso et al. (2013).

  3. 3.

    Following the definition of firm size groups provided.

  4. 4.

    It should be noted that a similarity hypothesis between the CR*Dummy and CR*(1-Dummy) coefficients was rejected in all cases by an F test at 0.05.

References

  • Allen, F., & Gale, D. (2004). Competition and financial stability. Journal of Money, Credit, and Banking, 36(3), 453–480.

    Article  Google Scholar 

  • Audretsch, D. B., & Mahmood, T. (1995). New firm survival: New results using a hazard function. The Review of Economics and Statistics, 77(1), 97–103.

    Article  Google Scholar 

  • Beck, T., & Demirgüç-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943.

    Article  Google Scholar 

  • Beck, T., Demirgüç-Kunt, A., & Levine, R. (2006). Bank concentration, competition, and crises: First results. Journal of Banking & Finance, 30(5), 1581–1603.

    Article  Google Scholar 

  • Black, S. E., & Strahan, P. E. (2002). Entrepreneurship and bank credit availability. The Journal of Finance, 57(6), 2807–2833.

    Article  Google Scholar 

  • Bonaccorsi di Patti, E., & Dell’Ariccia, G. (2004). Bank competition and firm creation. Journal of Money, Credit, and Banking, 36(2), 225–251.

    Article  Google Scholar 

  • Boyd, J. H., & De Nicolo, G. (2005). The theory of bank risk taking and competition revisited. The Journal of Finance, 60(3), 1329–1343.

    Article  Google Scholar 

  • Capasso, M., Cefis, E., & Frenken, K. (2013). On the existence of persistently outperforming firms. Industrial and Corporate Change, 23(4), 997–1036.

    Article  Google Scholar 

  • Carbo-Valverde, S., Rodriguez-Fernandez, F., & Udell, G. F. (2009). Bank market power and SME financing constraints. Review of Finance, 13(2), 309–340.

    Article  Google Scholar 

  • Cefis, E., & Marsili, O. (2005). A matter of life and death: Innovation and firm survival. Industrial and Corporate Change, 14(6), 1167–1192.

    Article  Google Scholar 

  • Cetorelli, N., & Strahan, P. E. (2006). Finance as a barrier to entry: Bank competition and industry structure in local US markets. The Journal of Finance, 61(1), 437–461.

    Article  Google Scholar 

  • Claessens, S., & Laeven, L. (2004). What drives bank competition? Some international evidence. Journal of Money, Credit, and Banking, 36(3), 563–583.

    Article  Google Scholar 

  • Fielding, D., & Rewilak, J. (2015). Credit booms, financial fragility and banking crises. Economics Letters, 136, 233–236.

    Article  Google Scholar 

  • Fotopoulos, G., & Louri, H. (2000). Determinants of hazard confronting new entry: Does financial structure matter? Review of Industrial Organization, 17(3), 285–300.

    Article  Google Scholar 

  • Hao, L., & Naiman, D. Q. (2007). Quantile regression. (No. 149). Sage.

    Google Scholar 

  • Henrekson, M., & Johansson, D. (2010). Gazelles as job creators: A survey and interpretation of the evidence. Small Business Economics, 35(2), 227–244.

    Article  Google Scholar 

  • Koenker, R. (2004). Quantile regression for longitudinal data. Journal of Multivariate Analysis, 91(1), 74–89.

    Article  Google Scholar 

  • Laeven, L., & Valencia, F. (2013). The real effects of financial sector interventions during crises. Journal of Money, Credit and Banking, 45(1), 147–177.

    Article  Google Scholar 

  • Petersen, M. A., & Rajan, R. G. (1995). The effect of credit market competition on lending relationships. The Quarterly Journal of Economics, 110(2), 407–443.

    Article  Google Scholar 

  • Rajan, R. G., & Zingales, L. (1998). Financial dependence and growth. The American Economic Review, 88(3), 559–586.

    Google Scholar 

  • Ratti, R. A., Lee, S., & Seol, Y. (2008). Bank concentration and financial constraints on firm-level investment in Europe. Journal of Banking & Finance, 32(12), 2684–2694.

    Article  Google Scholar 

  • Rice, T., & Strahan, P. E. (2010). Does credit competition affect small-firm finance? The Journal of Finance, 65(3), 861–889.

    Article  Google Scholar 

  • Shane, S. (2009). Why encouraging more people to become entrepreneurs is bad public policy. Small Business Economics, 33(2), 141–149.

    Article  Google Scholar 

Download references

Acknowledgement

We would like to thank the reviewers for insightful comments and suggestions.

Author information

Authors and Affiliations

  1. Department of Informatics, Athens University of Economics and Business, Athens, Greece

    Sophia Dimelis

  2. Department of Economics, University of Peloponnese, Peloponnese, Greece

    Ioannis Giotopoulos

  3. Department of Economics, Athens University of Economics and Business, Athens, Greece

    Helen Louri

  4. London School of Economics, EI/HO, London, UK

    Helen Louri

Authors
  1. Sophia Dimelis
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ioannis Giotopoulos
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Helen Louri
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sophia Dimelis .

Editor information

Editors and Affiliations

  1. Department of International Trade, Western Macedonia University of Applied Sciences, Kastoria, Greece

    Nicholas Tsounis

  2. Department of International Trade, Western Macedonia University of Applied Sciences, Kastoria, Greece

    Aspasia Vlachvei

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Dimelis, S., Giotopoulos, I., Louri, H. (2018). Banking Concentration and Firm Growth: The Impact of Size, Location and Financial Crisis. In: Tsounis, N., Vlachvei, A. (eds) Advances in Time Series Data Methods in Applied Economic Research. ICOAE 2018. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-02194-8_5

Download citation

Publish with us

Policies and ethics

Search

Navigation