The ex ante theory of collateral states that better informed lenders, such as informal lenders, rely less on collateral. We test this by contrasting the use of collateral between formal and informal lenders in the same market. Indeed, formal lenders rely more often on collateral, controlling for...

The village funds programme in Thailand is one of the biggest microfinance programmes in the world aiming at improving access to finance and income in rural areas. Earlier studies indicate that the programme is successful in realising its ambitions to some degree. We extend this work by...

Reichen die auf dem G-20-Gipfel beschlossenen Maßnahmen aus, die Finanzmärkte zu regulieren und die Wahrscheinlichkeit zukünftiger Krisen zu senken? Für Rolf J. Langhammer, Institut für Weltwirtschaft, Kiel, dienten die Beschlüsse des G-20-Gipfels der Krisenüberwindung und dem Versuch,...

Due to opaque information and weak enforcement in emerging loan markets, the need for collateral is high, whereas borrowers lack adequate assets to pledge as collateral. How is this puzzle solved? We find for a representative sample from Northeast Thailand that indeed most loans do not include...

This paper examines the role and determinants of collateral in emerging markets compared to mature ones. Analyzing a data set of 560 credit files of Thai commercial banks, we find that both the incidence and degree of collateralization are higher there than in developed markets. Thai banks use...

This paper examines the role and determinants of collateral in emerging markets compared to mature ones. Analyzing a data set of 560 credit files of Thai commercial banks, we find that both the incidence and degree of collateralization are higher there than in developed markets. Thai banks use...

We show that technical indicators deliver economic value in predicting the U.S. equity premium. A crucial element of this value stems from the stability of return predictability over the full sample period from 1950 to 2013. Results tentatively improve over time and beat alternatives over...