Our study explores the decision to participate in the shadow economy and evade taxes. It does so in light of expected unity maximization and behavioral economics. We report a laboratory experiment where a hypothetical credit market involved participants on both the supply and demand sides of the...

Covenants are particular clauses in the debt contracts of firms that restrict business policy, giving creditors the possibility of putting precise actions into force (normally early repayment) when the covenants are violated. The main purpose of covenants given in the literature is to resolve...

This paper aims to investigate the determinants of collateral requirements for loans that are extended to small and medium-sized enterprises in less-developed countries. Our primary data source consists of the results from firms in Eastern Europe and Central Asia from the Business Environment...