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information, this study analyzes the effect of the blockchain's public transparency paradigm on behavioral patterns and market …Despite a growing interest, researchers and practitioners still struggle to transfer the blockchain concept introduced … outcomes. In line with prior research, our findings indicate that the blockchain's shared record mitigates adverse selection …
Persistent link: https://www.econbiz.de/10011985255
information, this study analyzes the effect of the blockchain's public transparency paradigm on behavioral patterns and market …Despite a growing interest, researchers and practitioners still struggle to transfer the blockchain concept introduced … outcomes. In line with prior research, our findings indicate that the blockchain's shared record mitigates adverse selection …
Persistent link: https://www.econbiz.de/10012898959
Both borrowers and lenders can be socially responsible (SR). Ethical banks commit to financing only ethical projects, which have social profitability but lower expected revenues than standard projects. Instead, no credible commitment exists for SR borrowers. The matching between SR borrowers and...
Persistent link: https://www.econbiz.de/10011705659
incentive problems of professional blockchain participants who contribute to the development and sales of the product. We argue …
Persistent link: https://www.econbiz.de/10012587665
Transparency has become a catchword and in the economic-political debate is often seen as a universal remedy for all … sorts of problems. In this paper, we analyze and discuss the meaning and use of the concept of transparency in economic … research. We look for common denominators across different areas where the concept is used, and find that transparency in …
Persistent link: https://www.econbiz.de/10010393290
The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a firm is liquidated. Second, it loses the rent...
Persistent link: https://www.econbiz.de/10010440454
We show that lenders join a U.S. commercial credit bureau when information asymmetries between incumbents and entrants create an adverse selection problem that hinders market entry. Lenders also delay joining when information asymmetries protect them from competition in existing markets,...
Persistent link: https://www.econbiz.de/10011960063
E-commerce and FinTech are currently booming in China. The growing consumer market is accompanied by internet finance … is seeing rapid growth that could affect financial stability. Applying FinTech and emerging technologies in … higher standard of information transparency in order to protect against its risks against the background of digital …
Persistent link: https://www.econbiz.de/10012698383
We develop a dynamic model of debt contracts with adverse selection and belief updates. In the model, entrepreneurs borrow investment goods from lenders to run businesses whose returns depend on entrepreneurial productivity and common productivity. Entrepreneurial productivity is the...
Persistent link: https://www.econbiz.de/10012840518
This paper examines the conditions for credit volume or borrower rationing in a competitive credit market in which the project characteristics are private information of the borrowers. There can only be credit volume rationing if the higher-risk credit applicants have a higher return in the...
Persistent link: https://www.econbiz.de/10008697924