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Joint Ventures as a Commitment Device Against Lobbies

Berardi, Nicoletta; Seabright, Paul - C.E.P.R. Discussion Papers - 2010

This paper investigates a hitherto unexplored rationale for firms to enter into joint ventures. We model risky projects with autocorrelated productivity shocks as creating an option value of investing over time so that later investments benefit from the information revealed by the realization of...

Persistent link: https://www.econbiz.de/10008468544

A Lender-Based Theory of Collateral

Inderst, Roman; Mueller, Holger M - C.E.P.R. Discussion Papers - 2006

rejects marginally profitable projects. Collateral mitigates this inefficiency by 'flattening' the local lender’s payoff …-à-vis transaction lenders lead to higher collateral requirements, thus strengthening the role of collateral in local lending …

Persistent link: https://www.econbiz.de/10005123922

Collateral, Default Risk, and Relationship Lending: An Empirical Study on Financial Contracting

Krahnen, Jan Pieter - C.E.P.R. Discussion Papers - 2000

This paper provides new insights into the nature of relationship lending by analysing the role of collateral and its … indicate that the use of collateral in loan contracts is mainly driven by aspects of relationship lending and renegotiation … risk. Relationship lenders do require more collateral from their debtors than normal lenders for two main reasons. First …

Persistent link: https://www.econbiz.de/10005123985

Bidding and Performance in Repo Auctions: Evidence from ECB Open Market Operations

Bindseil, Ulrich; Nyborg, Kjell G; Strebulaev, Ilya - C.E.P.R. Discussion Papers - 2004

bidders are more concerned with the loser’s nightmare, collateral, and future interest rate reductions by the ECB. Small and …

Persistent link: https://www.econbiz.de/10005067452

Creditor Protection and Stock Price Volatility

Hale, Galina B; Razin, Assaf; Tong, Hui - C.E.P.R. Discussion Papers - 2007

This paper analyzes the effect of creditor protection on the volatility of stock market returns. Our application of the Tobin’s q model predicts that credit protection reduces the probability of oscillations between binding and nonbinding states of the credit constraint, which result from...

Persistent link: https://www.econbiz.de/10005504268

The de Soto Effect

Besley, Timothy J.; Ghatak, Maitreesh - C.E.P.R. Discussion Papers - 2009

collateral. This has become a cause célèbre of Hernando de Soto whose views are influential in debates about policy reform …

Persistent link: https://www.econbiz.de/10005656127

Debt Portfolios

Hintermaier, Thomas; Koeniger, Winfried - C.E.P.R. Discussion Papers - 2011

the U.S. We then establish the quantitative result that home equity does not serve as informal collateral for unsecured …

Persistent link: https://www.econbiz.de/10009001063

Sovereign Default Risk and Bank Fragility in Financially Integrated Economies

Bolton, Patrick; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2011

government debt. The safest governments inefficiently restrict the amount of high quality debt that could be used as collateral …

Persistent link: https://www.econbiz.de/10009003147

Collateral Vs. Project Screening: A Model Of Lazy Banks

Manove, Michael; Padilla, Atilano Jorge; Pagano, Marco - C.E.P.R. Discussion Papers - 2000

market equilibria in which cheap credit is inappropriately emphasized over project screening. Restrictions on collateral …

Persistent link: https://www.econbiz.de/10005662399

Equilibrium and Welfare in Markets with Financially Constrained Arbitrageurs

Gromb, Denis; Vayanos, Dimitri - C.E.P.R. Discussion Papers - 2001

We propose a multi-period model in which competitive arbitrageurs exploit discrepancies between the prices of two identical risky assets, traded in segmented markets. Arbitrageurs need to collateralize separately their positions in each asset, and this implies a financial constraint limiting...

Persistent link: https://www.econbiz.de/10005666703