developing a theoretical framework where a firm applies for a bank loan to implement a risky project. The probability of success … increases if the firm exerts a costly managerial extra-effort, but the bank is unable to observe such an effort: a moral hazard … to the effort cost. In this case we find that credit is granted only if the bank hires a management consultant, even when …

This paper investigates the roles of bank and trade credits in a supply chain with a capital constrained retailer … facing demand uncertainty. The retailer can borrow credit from a bank (bank credit), and/or from the supplier who allows … the retailer prefers trade credit, if the trade credit market is more competitive than the bank credit market; otherwise …