Morgan, Horatio M. (2013): Credit Unions, Consolidation and Business Formation: Evidence from Canadian provinces.
Preview |
PDF
MPRA_paper_52327.pdf Download (651kB) | Preview |
Abstract
This study empirically evaluates the impact of consolidation activity in the credit union system on the rate of business formation. Drawing on Canadian provincial-level data over the period 1992-2009, it provides evidence which suggests that consolidation activity is unlikely to hurt business formation in the absence of intense competition in the credit market. Specifically, a unit increase in credit union assets per working-age (15-64) individual has a negative, but negligible effect on the rate of business formation. However, the intensification of competition in the credit union system may increase the magnitude of this negative effect. These findings may inform the formulation of small business and entrepreneurship policies. In particular, they suggest that competition policies on the banking sector warrant greater attention as consolidation activity unfolds in the credit union system.
Item Type: | MPRA Paper |
---|---|
Original Title: | Credit Unions, Consolidation and Business Formation: Evidence from Canadian provinces |
Language: | English |
Keywords: | Competition, Consolidation, Credit unions, Business formation, Small business lending |
Subjects: | C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change ; Industrial Price Indices L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L26 - Entrepreneurship M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M13 - New Firms ; Startups |
Item ID: | 52327 |
Depositing User: | Unnamed user with username horatio.morgan |
Date Deposited: | 17 Dec 2013 18:29 |
Last Modified: | 29 Sep 2019 22:16 |
References: | Aghion, P., Blundell, R., Griffith, R., Howitt, P., Prantl, S., 2009. The effects of entry on incumbent innovation and productivity. Review of Economics and Statistics 91(1), 20-32. Avery, R.B., Samolyk, K.A., 2004. Bank Consolidation and Small Business Lending: The Role of Community Banks. Journal of Financial Services 25(2/3), 291-325. Bates, T., 1990. Entrepreneur human capital inputs and small business longevity. Review of Economics and Statistics 72(4), 551-559. Baumol, W.J., 1990. Entrepreneurship: Productive, Unproductive and Destructive. Journal of Political Economy 98, 893–921. Berger, A.N., Demsetz, R.S., Strahan, P.E., 1999. The consolidation of the financial services industry: Causes, consequences, and implications for the future. Journal of Banking & Finance 23, 153-194. Berger, A., Kashyap, A., Scalise, J., 1995. The transformation of the U.S. banking industry: what a long, strange trip it’s been. Brookings Papers on Economic Activity 2, 55-218. Berger, A.N., Miller, N.A., Petersen, M.A., Rajan, R.G., Stein, J.C., 2005. Does function follow organizational form? Evidence from the lending practices of large and small banks. Journal of Finance 76(2), 237-269. Berger, A.N., Saunders, A., Scalise, J.M., Udell, G.F., 1998. The effects of bank mergers and acquisitions on small business lending. Journal of Financial Economics 50, 187-229. Birley, S., 1989. Female entrepreneurs: are they really different? Journal of Small Business Management 27, 32-37. Birley, S., 2006. Women entrepreneurs: a research overview. In: Casson, M., Yeung, B., Basu, A., Wadeson, N. (Eds), The Oxford Handbook of Entrepreneurship, Oxford University Press, Oxford, pp. 611-628. Blanchflower, D.G., Oswald, A., Stutzer, A., 2001. Latent Entrepreneurship across Nations. European Economic Review 45, 680-691. Blanchard, L., Zhao, B., Yinger, J., 2008. Do lenders discriminate against minority and women entrepreneurs? Journal of Urban Economics 63, 467-497. Bordo, M., 1995. Regulation and Bank Stability: Canada and the United States, 1870-1980. World Bank Policy Research Working Paper 1532. World Bank, Washington, DC. Borjas, G.J., 1986. The self-employment experience of immigrants. Journal of Human Resources 21, 485-506. Brock, W.A., Evans, D.S., 1986. The Economics of Small Businesses: Their Role and Regulation in the US Economy. Holmes and Meier, New York. Brush, C.G., 1992. Research on women business owners: pasttrends, a new perspective and future directions. Entrepreneurship Theory and Practice 4, 5-30. Colombo, M., Grilli, L., 2005. Founders’ human capital and the growth of new technology-based firms: A competence-based view. Research Policy 34(6), 795-816. Craig, S.G., Hardee, P., 2007. The impact of small bank consolidation on small business credit availability. Journal of Banking & Finance 31(4), 1237-1263. Francis, B., Hasan, I., Wang, H., 2008. Bank consolidation and new business formation. Journal of Banking & Finance 32(8), 1598-1612. Fritsch, M., Mueller, P., 2004. Effects of New Business Formation on Regional Development over Time. Regional Studies 38(8), 961-975. Henley, A., 2005. Job creation by the self-employed: The roles of entrepreneurial and financial capital. Small Business Economics 25(2), 175-196. Keeton, W., 1996. Do bank mergers reduce lending to businesses and farmers? New evidence from Tenth District States. Federal Reserve Bank of Kansas City Economic Review, 81 (3), 63-75. Kim, G.O., 2006. Do equally owned small businesses have equal access to credit? Small Business Economics 27, 369-386. Lee, M.A., Rendall, M.S., 2001. Self-employment disadvantage in the working lives of blacks and females. Population Research and Policy Review 20, 291-320. Lévesque, M., Minniti, M., 2006. The effect of aging on entrepreneurial behaviour. Journal of Business Venturing 17, 189-210. Lévesque, M., Shepherd, D.A.,Douglas, E.J., 2002. Employment or self-employment: a dynamic utility-maximizing model. Journal of Business Venturing 17, 189-210. Levie, J., Smallbone, D., 2007. Immigration, ethnicity and entrepreneurial behaviour. In: Minniti, (Ed), Entrepreneurship: The Engine of Growth, Volume 1, Praeger, Westport CT, pp. 157-180. Loftstrom, M., 2002. Labour market assimilation and the self-employment decision of immigrant entrepreneurs. Journal of Population Economics 15, 83-114. Madsen, H., Neergaard, H., Ulhoi, J.P., 2003. Knowledge-intensive entrepreneurship and human capital. Journal of Small Business and Enterprise Development 10(4), 426-434. Petersen, M. A., Rajan, R.G., 1994. The Benefits of Lending Relationships: Evidence from Small Business Data. Journal of Finance 49(1), 3-37. Petersen, M. A., Rajan, R. G. 1995. The effect of credit market competition on lending relationships. Quarterly Journal of Economics 110, 407–443. Rogers, T.M., 2012. Bank Market Structure and Entrepreneurship. Small Business Economics, 39, 909-920. Schumpeter, J.A., 1934. The Theory of Economic Development. Harvard University Press, Cambridge. Strahan, P.E., Weston, J.P., 1998. Small business lending and the changing structure of the banking structure. Journal of Banking & Finance 6-8, 821-845. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/52327 |
Available Versions of this Item
- Credit Unions, Consolidation and Business Formation: Evidence from Canadian provinces. (deposited 17 Dec 2013 18:29) [Currently Displayed]