Focusing on Italy (one of the largest factoring and banking markets in Europe) and using a unique dataset, we show three main results: factoring companies are (on average) more stable than banks; 2) the stability of factoring companies increase when competition declines (competition-fragility view); 3) the competition-fragility view is weaker in the factoring industry than in the banking industry. Our findings indicate that competition in the Italian credit industry was greater in factoring than in banking.
Degl’Innocenti, M., Fiordelisi, F., Trinugroho, I. (2020). Competition and Stability in the credit industry: banking vs. factoring industries. THE BRITISH ACCOUNTING REVIEW, 52(100831) [10.1016/j.bar.2019.03.006].
Competition and Stability in the credit industry: banking vs. factoring industries
Franco Fiordelisi;
2020-01-01
Abstract
Focusing on Italy (one of the largest factoring and banking markets in Europe) and using a unique dataset, we show three main results: factoring companies are (on average) more stable than banks; 2) the stability of factoring companies increase when competition declines (competition-fragility view); 3) the competition-fragility view is weaker in the factoring industry than in the banking industry. Our findings indicate that competition in the Italian credit industry was greater in factoring than in banking.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
