Show simple item record

Files in this item


Item metadata

dc.contributor.authorZhang, Song
dc.contributor.authorHan, Liang
dc.contributor.authorKallias, Konstantinos
dc.contributor.authorKallias, Antonios
dc.identifier.citationZhang , S , Han , L , Kallias , K & Kallias , A 2021 , ' The value of in-person banking : evidence from U.S. small businesses ' , Review of Quantitative Finance and Accounting , vol. First Online .
dc.identifier.otherPURE: 273069012
dc.identifier.otherPURE UUID: ff2f3f48-bdbd-4877-9678-16ef04efa286
dc.identifier.otherORCID: /0000-0002-3673-2460/work/93161716
dc.identifier.otherScopus: 85105392218
dc.description.abstractWe produce the first systematic study of the determinants and implications of in-person banking. Using survey data from the U.S., we show that firms which are informationally opaque or operate in rural areas are liable to contact their primary bank in-person. This tendency extends to older, less educated, and female business owners. We find that a relationship based on face-to-face communication, on average, lasts 17.88 months longer, spans a wider range of financial services, and is more likely to be exclusive. The associated loans mature 3.37 months later and bear interest rates which are 11 basis points lower. For good quality firms, in-person communication also relates to less discouraged borrowing. These results are robust to multiple approaches for endogeneity, including recursive bivariate probits, treatment effect models, and instrumental variables regressions. Overall, our findings offer empirical grounding to soft information theory and a note of caution to banks against suppressing channels of interpersonal communication.
dc.relation.ispartofReview of Quantitative Finance and Accountingen
dc.rightsCopyright © The Author(s) 2021. Open Access. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit
dc.subjectSmall businessen
dc.subjectRelationship bankingen
dc.subjectSoft informationen
dc.subjectIn-person communicationen
dc.subjectHG Financeen
dc.titleThe value of in-person banking : evidence from U.S. small businessesen
dc.typeJournal articleen
dc.description.versionPublisher PDFen
dc.contributor.institutionUniversity of St Andrews.School of Managementen
dc.description.statusPeer revieweden

This item appears in the following Collection(s)

Show simple item record