Intangible Assets and the Determinants of a Single Bank Relation of German SMEs

  • Jarko Firdmuc Zeppelin University Friedrichshafen, Germany; Mendel University in Brno, Czech Republic
  • Philipp Schreiber University of Mannheim
  • Martin Siddiqui Zeppelin University Friedrichshafen


We focus on the determinants and potential benefits of relationship banking. Based on the existing literature and the unique role intangible assets play regarding firms'capital structure, we test two hypotheses using rich data on firm-bank relationships in Germany. We show that firstly, a high share of intangible assets does not worsen the access of firms to debt financing compared to matched firms with a low share of intangible assets. And secondly, firms' share of intangible assets statistically signicantly determines firms' choice of an exclusive and persistent bank relation.