Early stage SME bankruptcy: does the local banking market matter?

@article{Arcuri2018EarlySS,
  title={Early stage SME bankruptcy: does the local banking market matter?},
  author={Giuseppe Arcuri and Nadine Levratto},
  journal={Small Business Economics},
  year={2018},
  pages={1-16}
}
This paper investigates the role of local context, with regard to the effect of local financial development and banking concentration, on a firm’s probability of bankruptcy at the post-creation stage. Our empirical setting is based on the logit multilevel model that better allows the treatment of data referring to different levels of aggregation (firm and local variables) applied to companies located in Italy. We find that a higher level of financial development in a province decreases the… CONTINUE READING