Private firms often rely on insider lending, e.g. by banks. Insider lending is based on lending relationships that typically involve intertemporal loan pricing: losses from early years are recovered by information rents in later years, stemming from private information the inside lender has...

Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...

During the COVID-19 pandemic, some goods suddenly became scarce due to panic purchases and stockpiling. The decision to hoard is influenced by higher-order beliefs. If an agent believes that other agents think that a good will become scarce, she concludes that these other agents will hoard, and...

Using a sample of up to 2,503 initial public offerings (IPOs) in 32 countries from 2011–2017, we predict and find that higher levels of country‐level accounting enforcement are associated with lower levels of IPO underpricing. IPOs in countries with a relatively low accounting enforcement...

Im Schrifttum werden Kreditsicherheiten vorwiegend positiv beurteilt, gerade weil sie Anreizprobleme entschärfen. Kreditsicherheiten können aber auch Anreizprobleme hervorrufen, wenn es zwei unterschiedliche Gläubigerparteien gibt, etwa Banken und Lieferanten. Dieser Beitrag präsentiert ein...

Dieser Beitrag gibt einen Überblick über die theoretische Forschung zur Kreditbesicherung. Das Schrifttum stellt vor allem zwei Vorteile von Kreditsicherheiten heraus. Erstens kann es gelingen, gute von schlechten Kreditnehmern zu unterscheiden (Sortierungs- oder Trennfunktion). Zweitens...

This paper presents a model showing that accounting conservatism affects creditor coordination when the borrowing firm is in financial distress. There are two effects. First, accounting conservatism tends to reduce dividend payments and to keep assets within the firm (dividend restriction...

When a cooperative goes bankrupt, its members often lose more than their paid-in capital. Members might be subject to personal liability, and may lose other benefits tied to membership, such as employment, benefits as a consumer or supplier, or housing at a lower price. We find that cooperatives...