Credit rationing arising out of informational asymmetry and lack of collateral is a well-recognised economic constraint in the credit market. These constraints get magnified for small businesses. This paper attempts to capture the dimension of trustworthiness (calculative trust) by designing a...

Paper models lender's decision based on project riskiness, trust from borrower's socioeconomic network, and social cost of default for the borrower. The paper suggests a methodology to estimate aggregate level of trustworthiness of borrower in socio-economic network. Our model links the social...

A borrower may hesitate to borrow from her close relatives and family members as it costs them in terms of reduction in social insurance in the case of default. This invisible cost reduces credit risk. India's household indebtedness survey shows some evidence on these borrowing preferences. This...

A borrower may hesitate to borrow from her close relatives and family members as it costs them in terms of reduction in social insurance in the case of default. This invisible cost reduces credit risk. India’s household indebtedness survey shows some evidence on these borrowing preferences....

Credit rationing arising out of informational asymmetry and lack of collateral has been an established economic constraint. These constraints are magnified for small businesses. We have made an attempt to capture the dimension of trustworthiness (calculative trust) by designing a multi-period...

Credit rationing arising out of informational asymmetry and lack of collateral is a well-recognised economic constraint in the credit market. These constraints get magnified for small businesses. This paper attempts to capture the dimension of trustworthiness (calculative trust) by designing a...

Purpose – Maintaining cooperation and avoiding opportunism is essential for a healthy venture capitalist (VC) – entrepreneur relationship. Therefore, the purpose of this paper is to explore the role of control and trust for developing a cooperative VC-entrepreneur relationship in an agency...