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We study the influence of bank branch closure on new firm formation in Sweden, with a panel database that captures the geographical locations of all the Swedish bank branches from 2000 to 2013. Using spatial econometric analysis at a municipal level, we show that bank proximity to firms is vital for entrepreneurship to thrive and sustain in Sweden. From the Fixed-Effects spatial models, the increase in distance to the banks due to bank branch closure is shown to affect new firm formation negatively. The further a firm is located away from the bank, the higher the monitoring cost is for the banks. The increase in distance also results in an increase in information asymmetries because of the banks’ eroded ability to collect soft information about the borrower firm. Due to high risks associated with the lack of information and uncertainty, banks might not be as willing to loan money to a distant firm compared to a nearby firm. Furthermore, the presence of neighbourhood spillover effects is evidenced through the Moran’s I statistics, which means that the omission of spatial effects in the analysis would have resulted in biased estimates.

QC 20181022

We study the influence of bank branch closure on new firm formation in Sweden, with a panel database that captures the geographical locations of all the Swedish bank branches from 2000 to 2013. Using spatial econometric analysis at a municipal level, we show that bank proximity to firms is vital for entrepreneurship to thrive and sustain in Sweden. From the Fixed-Effects spatial models, the increase in distance to the banks due to bank branch closure is shown to affect new firm formation negatively. The further a firm is located away from the bank, the higher the monitoring cost is for the banks. The increase in distance also results in an increase in information asymmetries because of the banks’ eroded ability to collect soft information about the borrower firm. Due to high risks associated with the lack of information and uncertainty, banks might not be as willing to loan money to a distant firm compared to a nearby firm. Furthermore, the presence of neighbourhood spillover effects is evidenced through the Moran’s I statistics, which means that the omission of spatial effects in the analysis would have resulted in biased estimates.

QC 20181022

QC 20170512

QC 20170512

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

This study explores if received trust is intrinsically motivating and if it is associated with subjective person-job fit and occupational turnover intentions in the Swedish brokerage setting. Results from 397 real estate brokers showed that brokers are driven by the gained trust from their sellers and that gained trust is a vital part of person-job fit within brokerage. Furthermore, increased levels of person-job fit strongly reduce occupational turnover intentions within brokerage. This study offers further insights into intrinsic motivation in professional service settings and indicates that certain types of customer interactions help to fulfill the basic psychological needs of competence and relatedness., QC 20221116

This study explores if received trust is intrinsically motivating and if it is associated with subjective person-job fit and occupational turnover intentions in the Swedish brokerage setting. Results from 397 real estate brokers showed that brokers are driven by the gained trust from their sellers and that gained trust is a vital part of person-job fit within brokerage. Furthermore, increased levels of person-job fit strongly reduce occupational turnover intentions within brokerage. This study offers further insights into intrinsic motivation in professional service settings and indicates that certain types of customer interactions help to fulfill the basic psychological needs of competence and relatedness.

We study the influence of bank branch closure on new firm formation in Sweden, with a panel database that captures the geographical locations of all the Swedish bank branches from 2000 to 2013. Using spatial econometric analysis at a municipal level, we show that bank proximity to firms is vital for entrepreneurship to thrive and sustain in Sweden. From the Fixed-Effects spatial models, the increase in distance to the banks due to bank branch closure is shown to affect new firm formation negatively. The further a firm is located away from the bank, the higher the monitoring cost is for the banks. The increase in distance also results in an increase in information asymmetries because of the banks’ eroded ability to collect soft information about the borrower firm. Due to high risks associated with the lack of information and uncertainty, banks might not be as willing to loan money to a distant firm compared to a nearby firm. Furthermore, the presence of neighbourhood spillover effects is evidenced through the Moran’s I statistics, which means that the omission of spatial effects in the analysis would have resulted in biased estimates.

QC 20170512

QC 20181022

QC 20181022

We study the influence of bank branch closure on new firm formation in Sweden, with a panel database that captures the geographical locations of all the Swedish bank branches from 2000 to 2013. Using spatial econometric analysis at a municipal level, we show that bank proximity to firms is vital for entrepreneurship to thrive and sustain in Sweden. From the Fixed-Effects spatial models, the increase in distance to the banks due to bank branch closure is shown to affect new firm formation negatively. The further a firm is located away from the bank, the higher the monitoring cost is for the banks. The increase in distance also results in an increase in information asymmetries because of the banks’ eroded ability to collect soft information about the borrower firm. Due to high risks associated with the lack of information and uncertainty, banks might not be as willing to loan money to a distant firm compared to a nearby firm. Furthermore, the presence of neighbourhood spillover effects is evidenced through the Moran’s I statistics, which means that the omission of spatial effects in the analysis would have resulted in biased estimates.

QC 20181022

QC 20170512

We study the influence of bank branch closure on new firm formation in Sweden, with a panel database that captures the geographical locations of all the Swedish bank branches from 2000 to 2013. Using spatial econometric analysis at a municipal level, we show that bank proximity to firms is vital for entrepreneurship to thrive and sustain in Sweden. From the Fixed-Effects spatial models, the increase in distance to the banks due to bank branch closure is shown to affect new firm formation negatively. The further a firm is located away from the bank, the higher the monitoring cost is for the banks. The increase in distance also results in an increase in information asymmetries because of the banks’ eroded ability to collect soft information about the borrower firm. Due to high risks associated with the lack of information and uncertainty, banks might not be as willing to loan money to a distant firm compared to a nearby firm. Furthermore, the presence of neighbourhood spillover effects is evidenced through the Moran’s I statistics, which means that the omission of spatial effects in the analysis would have resulted in biased estimates.

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

QC 20170512