Small closely held corporations cannot rely on market forces or outside monitors to discipline hired managers. For such firms, managerial shareholdings may be a disproportionately important tool for controlling principal-agent problems. We study a random sample of 266 small, closely held U.S....

We test whether rural versus urban location, and the amount of social capital present in those locations, influence the performance of Small Business Administration (SBA) 7(a) loans originated between 1984 and 2012. On average, we find that rural loans are about 11% less likely to default than...

There has traditionally been a symbiotic link between new business ventures and new banking ventures. This article finds that the traditional link between small businesses and small banks - the small business loan - has weakened in recent years. While new banks have intensified their reliance on...