We develop a model which accounts for the observed equity premium and average risk free rate, without implying … counterfactually high risk aversion. The model also does well in accounting for business cycle phenomena. …

Guarantees play an important role in debt contracts. They alter the risk for the lender, transform borrowersï … singling out the direct effect of the presence of guarantees on credit risk. The empirical results show that real guarantees … problems. Controlling for borrowers� characteristics, both real and personal guarantees reduce ex-ante credit risk. …

A remarkable feature of short-term business finance is the widespread use of trade credit as collateral in bank … information associated with this form of collateral. The model shows that the share of receivables pledged as collateral is larger …

The paper provides an empirical assessment of the market risk exposure of several portfolios representative of real … life investment positions. We employ the notion of value at risk made popular by the recent debate on capital budgeting …

A growing number of studies on the US subprime market indicate that, due to asymmetric information, credit risk …

reflect the characteristics of the guarantor (credit risk, size of rescue measures, timeliness of repayments) and not those of …

. Equity is a preferable source of external finance for innovation than debt. It does not require collateral, does not … exacerbate moral hazard problems connected with the substitution of high-risk for low-risk projects, quite common when using debt …