Artikel
The Pricing of Small Business Loans
A major difficulty in determining the appropriate risk premium for lending to small businesses is the lack of market value information. This paper develops a mean-variance model that uses available failure rate data to establish a benchmark risk premium for lending to firms in specific industries. This model incorporates the benefits of diversifying across firms and industries. This paper also presents evidence that a random walk model provides the best forecast of future failure rates.
- Language
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Englisch
- Bibliographic citation
-
Journal: Journal of Small Business Finance ; ISSN: 1057-2287 ; Volume: 3 ; Year: 1994 ; Issue: 3 ; Pages: 249-260 ; Greenwich, CT: JAI Press
- Classification
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Management
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Firm Performance: Size, Diversification, and Scope
Bankruptcy; Liquidation
- Subject
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Small Business
Loan Pricing
Interest rates
Borrowing
- Event
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Geistige Schöpfung
- (who)
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Ford, John K.
- Event
-
Veröffentlichung
- (who)
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JAI Press
- (where)
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Greenwich, CT
- (when)
-
1994
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Ford, John K.
- JAI Press
Time of origin
- 1994
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