Showing 1 - 10 of 16
This paper deals with the concentration of corporate bank debt. In an economy with asymmetric information, we show that the bank debt concentration with a main bank possessing informational monopoly is a reliable signal of the firm's quality for the secondary banks. Precisely, the firm's choice...
Persistent link: https://www.econbiz.de/10012739736
The purpose of this work is to establish what bank strategies in fixing the credit conditions are in an asymmetric information framework. In order to do this, we use a set of 8646 observations of Belgian small and medium sized businesses. The numerous empirical tests realized seem to indicate...
Persistent link: https://www.econbiz.de/10012743111
Trade credit is a major source of financing. Over the past decade, it has represented more than 20% of the total assets of US listed firms. Different arguments have been suggested in the academic literature to explain why there is a strong industry pattern to trade credit usage (including the...
Persistent link: https://www.econbiz.de/10012722942
This article proposes an explanation of the structures of external financing by analysing the consequences of a leasing decision for unsecured creditors. A leasing decision generates two effects: the appearance of an agency cost related to the retrogradation of the existing banking claims and a...
Persistent link: https://www.econbiz.de/10012742538
On the stock market, the investors are not identical. The large investors like the institutional investors, have a significant financial effect and a different valuation of the firm from that of the small investors. When they purchase shares, these two groups are in competition. However, large...
Persistent link: https://www.econbiz.de/10012741382
This study tests for the presence of linear and nonlinear dependences in returns and volatility for six agricultural futures daily prices series, three traded on MATIF Euronext (wheat, corn, and rapeseed), and three traded on Chicago Board of Trade (red winter wheat, corn, and soybean) over the...
Persistent link: https://www.econbiz.de/10011240922
Persistent link: https://www.econbiz.de/10005923303
During 1992–2007, suppliers financed almost 10% of the total assets of US listed firms. This intensive usage of trade credit is puzzling in the light of its high (implicit) costs. By arguing that trade credit use provides valuable information to outside investors, we first derive a theoretical...
Persistent link: https://www.econbiz.de/10010577989
"The recent important transformations of the banking sector, especially through numerous mergers and acquisitions, both in Europe and in the USA, have raised serious concerns for the financing of small businesses (SBS). Indeed, SBS are known to be heavily dependent of this financing channel but...
Persistent link: https://www.econbiz.de/10005334943
We investigate the relationship between borrower quality and the structure of the pool of banks. First, we develop a theoretical model where the size of the banking pool is a credible signal of firm quality. We argue that better borrowers seek to disclose their quality in a credible way through...
Persistent link: https://www.econbiz.de/10008615329