The Role of the Banker in Financing Medium-sized Firms in Belgium: Lender or Adviser? Wtterwulghe, Robert.

By: Wtterwulghe, Robert
Contributor(s): Janssen, Frank
Material type: ArticleArticlePublisher: The Journals of Entrepreneurship 1997Description: 75-85Subject(s): Belgium | Medium Sized Enterprises | Banking | Financial Economics | EntrepreneurshipOnline resources: Click here to access online In: The Journal of EntrepreneurshipSummary: This article analyses, on the basis of a field study, the role of banks in financing medium enterprises in Belgium. It shows that, like small firms, medium-sized businesses have a preference for self-financing. As far as external funding is concerned, debt is generally their main source. However, their low debt ratios indicate that, as compared to the large firms, these enterprises take less recourse to banks and, as a result, pay little attention to their financial function. The banker does not play an important role as an adviser either, except when the firm decides to raise funds through the stock market. The article calls for greater specialisation on the part of the banks so that they can avoid conflicts of interest arising out of the mismatch between their service priorities and the needs of their clientele.
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Item type Current location Call number Vol info Status Date due Barcode
Articles Articles Ahmedabad (HO)
(Browse shelf) Vol. 6, Issue. 1 Available 004053

This article analyses, on the basis of a field study, the role of banks in financing medium enterprises in Belgium. It shows that, like small firms, medium-sized businesses have a preference for self-financing. As far as external funding is concerned, debt is generally their main source. However, their low debt ratios indicate that, as compared to the large firms, these enterprises take less recourse to banks and, as a result, pay little attention to their financial function. The banker does not play an important role as an adviser either, except when the firm decides to raise funds through the stock market. The article calls for greater specialisation on the part of the banks so that they can avoid conflicts of interest arising out of the mismatch between their service priorities and the needs of their clientele.

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