Affiliation:
1. Centre for Advanced Financial Research and Learning, Reserve Bank of India, Mumbai, Maharashtra, India.
Abstract
The analysis employs data on Indian listed firms from 1996 to 2010 to explore several hypotheses relating to the costs of lending relationships. The evidence indicates that smaller, established, levered and high-growth firms charge higher interest rates. In addition, capitalized firms charge lower rates, and both bank and firm ownership do have a role to play in influencing borrowing costs.
Subject
Business and International Management
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