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theory, practice, and policy. Using seven different methods on microenterprise loan applicants, we find striking results …
Persistent link: https://www.econbiz.de/10011083720
This paper shows that bonus contracts may arise endogenously as a response to agency problems within banks, and analyzes how compensation schemes change in reaction to anticipated bail-outs. If there is a risk-shifting problem, bail-out expectations lead to steeper bonus schemes and even more...
Persistent link: https://www.econbiz.de/10011083233
The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment …. Binding credit market constraints and incomplete insurance can reduce investment in activities with high expected profits. We … leads to significantly larger agricultural investment and riskier production choices in agriculture. The salient constraint …
Persistent link: https://www.econbiz.de/10011083318
If a non-financial firm does not do well in a financial crisis, it could be due to either a contraction of demand for its output or a contraction of supply of external finance. We propose a framework to assess the relative importance of the two shocks, making use of a measure of a firm's...
Persistent link: https://www.econbiz.de/10005661997
investment task. Moreover, emotions were explicitly measured, including anticipatory emotions experienced during the waiting … measured during the experiment. Main findings are that delayed resolution can affect investment, that the effect depends on the …
Persistent link: https://www.econbiz.de/10005124205
This Paper analyses the effect of dynamic capital structure adjustments on credit risk. Firms may optimally adjust their leverage in response to stochastic changes in firm value. It is shown that capital structure dynamics lower optimal initial leverage ratios but increase both fair credit...
Persistent link: https://www.econbiz.de/10005123682
We examine the risk-return characteristics of a rolling portfolio investment strategy where more than six thousand …
Persistent link: https://www.econbiz.de/10005124287
This Paper reports a new test of capital structure theories. It uses a filtering technique to identify large investment …
Persistent link: https://www.econbiz.de/10005067393
decrease, depending on the type of political risk. Using the Microdatabase Direct Investment of the Deutsche Bundesbank, we …
Persistent link: https://www.econbiz.de/10005067659
, and it also has a positive and significant effect on their market values. Our results are consistent with the theory that …
Persistent link: https://www.econbiz.de/10005497873