The diffusion of financial innovations: An examination of the adoption of small business credit scoring by large banking organizations

Journal of Business

Volumn 78, Issue 2, 2005, Pages 577-596

  Akhavein, Jalal ^a   Frame, W Scott ^b   White, Lawrence J ^c  

^a Moody's Risk Management Services   (United States)

^b FEDERAL RESERVE BANK OF ATLANTA   (United States)

^c NEW YORK UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 18144370289     PISSN: 00219398     EISSN: None     Source Type: Journal    
DOI: 10.1086/427639     Document Type: Article

References (51)

1. Asch, L. 1995. How the RMA/Fair, Isaac credit-scoring model was built. Journal of Commercial Lending 77 (June): 10-16.
2. Baptista, R. 2000. Do innovations diffuse faster within geographical clusters? International Journal of Industrial Organization 18 (April): 515-35.
3. Berger, A. N., W. S. Frame, and N. H. Miller. 2005. Credit scoring and the availability, price and risk of small business credit. Journal of Money, Credit, and Banking 37 (forthcoming).
4. Berger, A. N., L. G. Goldberg, and L. J. White. 2001. The effects of dynamic changes in bank competition on the supply of small business credit. European Finance Review 5 (January): 115-39.
5. Berger, A. N. and G. F. Udell. 1995. Relationship lending and lines of credit in small firm finance. Journal of Business 68 (July): 351-81.
6. Cohen, W. 1995. Empirical studies of innovative activity. In Handbook of the economics of innovation and technological change, ed. P. Stoneman. Cambridge, MA: Blackwell.
7. Cohen, W., and R. Levin. 1989. Empirical studies of innovation and market structure. In Handbook of industrial organization, vol. 2, ed. R. Schmalensee and R. Willig. Amsterdam: North-Holland.
8. Cole, R. A., L. G. Goldberg, and L. J. White. 2004. Cookie cutter versus character: The micro structure of small business lending by large and small banks. Journal of Financial and Quantitative Analysis 39 (June): 227-251.
9. Cox, D., and D. Oakes. 1985. Analysis of survival data. New York: Chapman & Hall.
10. Davies, S. 1979. The diffusion of process innovations. Cambridge: Cambridge University Press.
11. Eisenbeis, R. 1996. Recent developments in the application of credit scoring techniques to the evaluation of commercial loans. IMA Journal of Mathematics Applied in Business and Industry 7: 271-90.
12. Federal Reserve Board. 1997. Senior loan officer opinion survey on bank lending practices. (January).
13. Feldman, R. 1997. Banks and a big change in technology called credit scoring. Federal Reserve Bank of Minneapolis The Region (September): 19-25.
14. Finnerty, J. 1992. An overview of corporate securities innovation. Journal of Applied Corporate Finance 4 (Winter): 23-39.
15. Frame, W. S., M. Padhi, and L. Woosley. 2004. The effect of credit scoring on small business lending in low- and moderate-income areas. Financial Review 39 (February): 35-54.
16. Frame, W. S., A. Srinivasan, and L. Woosley. 2001. The effect of credit scoring on small business lending. Journal of Money, Credit, and Banking 33 (August): 813-25.
17. Frame, W. S. and L. J. White. 2004. Empirical studies of financial innovation: Lots of talk, little action? Journal of Economic Literature 42 (March): 116-114.
18. Fudenberg, D., and J. Tirole. 1985. Pre-emption and rent equalisation in the adoption of new technology. Review of Economic Studies 52 (July): 383-401.
19. Furst, K., W. W. Lang, and D. N. Nolle. 2002. Internet banking. Journal of Financial Services Research 22 (August): 95-117.
20. Gourlay, A. R. and E. J. Pentecost. 2002. The determinants of technology diffusion: Evidence from the UK financial sector. Manchester School 70 (March): 185-203.
21. Greene, W. 1997. Econometric analysis. New York: Macmillan.
22. Hagerstrand, T. 1967. Innovation diffusion as a spatial process. Chicago: University of Chicago Press.
23. Hannan, T., and J. McDowell. 1984. The determinants of technology adoption: The case of the banking firm. Rand Journal of Economics 15 (Autumn): 328-35.
24. _. 1987. Rival precedence and the dynamics of technology adoption: an empirical analysis. Economica 54 (May): 155-171.
25. Heckman, J. 1979. Sample selection bias as a specification error. Econometrica 47 (January): 153-61.
26. Ingham, H. and S. Thompson. 1993. The adoption of new technology in financial services: The case of building societies. Economics of Innovation and New Technology 2: 263-74.
27. Kalbfleisch, J., and R. Prentice. 1980. The statistical analysis of failure time data. New York: Wiley.
28. Karshenas, M., and P. Stoneman. 1993. Rank, stock, order, and epidemic effects in the diffusion of new process technologies: An empirical model. RAND Journal of Economics 24 (Winter): 503-28.
29. Kiefer N., 1988. Economic duration data and hazard functions. Journal of Economic Literature 26 (June): 646-79.
30. Mansfield, E. 1968a. The economics of technological change. New York: Norton.
31. _. 1968b. Industrial research and technological innovation: Econometric analysis. New York: Norton.
32. Mansfield, E., J. Rapoport, A. Romeo, E. Villani, S. Wagner, and F. Husic. 1977. The production and application of new industrial technology. New York: Norton.
33. Merton, R. C. 1992. Financial innovation and economic performance. Journal of Applied Corporate Finance 4 (Winter): 12-22.
34. Mester, L. 1997. What's the point of credit scoring? Federal Reserve Bank of Philadelphia Business Review (September-October): 3-16.
35. Miller, M. H. 1986. Financial innovation: The last twenty years and the next. Journal of Financial and Quantitative Analysis 21 (December): 459-71.
36. _. 1992. Financial innovation: achievements and prospects. Journal of Applied Corporate Finance 4 (Winter): 4-12.
37. Molyneux, P., and N. Shamroukh. 1996. Diffusion of financial innovations: the case of junk bonds and note issuance facilities. Journal of Money, Credit, and Banking 28 (August): 502-22.
38. Oster, S. 1982. The diffusion of innovation among steel firms: The basic oxygen furnace. Bell Journal of Economics 13 (Spring): 45-56.
39. Petersen, M., and R. Rajan. 1994. The benefits of lending relationships: Evidence from small business data. Journal of Finance 49 (March): 3-37.
40. _. 2002. Does distance still matter? The information revolution in small business lending. Journal of Finance 57 (December): 2533-70.
41. Rees, J., J. Briggs, and R. Oakey. 1984. The adoption of new technology in the American machinery industry. Regional Studies 18 (December): 489-504.
42. Reinganum, J. 1981a. Market structure and the diffusion of new technology. Bell Journal of Economics 12 (Autumn): 618-24.
43. _ 1981b. On the diffusion of new technology: A game theoretic approach. Review of Economic Studies 48 (July): 395-405.
44. Rose, N., and P. Joskow. 1990. The diffusion of new technologies: evidence from the electric utility industry. RAND Journal of Economics 21 (Autumn): 354-73.
45. Rutherford, R. 1994/1995. Securitizing small business loans: A banker's action plan. Commercial Lending Review 10 (Winter): 62-74.
46. Saloner, G., and A. Shepard. 1995. Adoption of technologies with network effects: An empirical examination of the adoption of automated teller machines. RAND Journal of Economics 26 (Autumn): 479-501.
47. Scherer, F. M. 1984. Innovation and growth: Schumpeterian perspectives. Cambridge, MA: MIT Press.
48. Schumpeter, J. A. 1950. Capitalism, socialism, and democracy, 3d ed. New York: Harper & Brothers.
49. Sinha, R. K. and M. Chandrashekaran. 1992. A split hazard model for analyzing the diffusion of innovations. Journal of Marketing Research 29 (February): 116-127.
50. Thwaites, A. 1982. Some evidence of regional variations in the diffusion of new industrial products and processes within the British manufacturing industry. Regional Studies 16 (October): 371-81.
51. Van Home, J. 1985. Of financial innovations and excesses. Journal of Finance 40 (July): 621-36.