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Inter-Firm Relationships and Informal Credit in Vietnam

McMillan, John; Woodruff, Christopher - C.E.P.R. Discussion Papers - 1998

Trading relations in Vietnam's emerging private sector are shaped by two market frictions: the difficulty of locating trading partners and the absence of legal enforcement of contracts. Examining relational contracting, we find that a firm trusts its customer enough to offer credit when the...

Persistent link: https://www.econbiz.de/10005504446

How do credit conditions shape economic recoveries?

Coricelli, Fabrizio; Roland, Isabelle - C.E.P.R. Discussion Papers - 2011

This paper investigates the role of credit in shaping economic recoveries and tries to shed some light on the phenomenon of creditless recoveries using industry-level data for a large sample of countries. We find that while a failure of the credit stock to recover to its pre-crisis level does...

Persistent link: https://www.econbiz.de/10008921777

Barter In Transition Economies: Competing Explanations Confront Ukrainian Data

Gorochowskij, Bogdan; Kaufmann, Daniel; Marin, Dalia - C.E.P.R. Discussion Papers - 2000

In this paper we survey the common explanations of barter in transition economies and expose them to detailed survey data on 165 barter deals in Ukraine in 1997. The evidence does not support the notion that soft budget constraints, lack of restructuring, or that the virtual economy are the...

Persistent link: https://www.econbiz.de/10005656304

In-Kind Finance

Burkart, Mike; Ellingsen, Tore - C.E.P.R. Discussion Papers - 2002

It is typically less profitable for an opportunistic borrower to divert inputs than to divert cash. Suppliers, therefore, may lend more liberally than banks. This simple argument is at the core of our contract theoretic model of trade credit in competitive markets. The model implies that trade...

Persistent link: https://www.econbiz.de/10005661490

Trust Vs Illusion: What is Driving Demonetization in Russia?

Marin, Dalia - C.E.P.R. Discussion Papers - 2000

The virtual economy argument for Russia suggests that barter -a payment in goods rather than cash - allows the parties to pretend that the manufacturing sector is producing value added by enabling this sector to sell its output at a higher price than its market value. We confront this prediction...

Persistent link: https://www.econbiz.de/10005661608

Constraints on Enterprise Liquidity and their Impact on the Monetary Sector in Formerly Centrally Planned Economies

Abel, István; Siklos, Pierre L - C.E.P.R. Discussion Papers - 1993

This paper demonstrates that the monetary policy of the National Bank of Hungary is restrictive and has ignored the liquidity problems raised by the overhang of inter-enterprise liquidity. The implication is that the success of the transition to market is thereby jeopardized.

Persistent link: https://www.econbiz.de/10005661882

Trade Credit and International Return Comovement

Albuquerque, Rui; Ramadorai, Tarun; Watugala, Sumudu - C.E.P.R. Discussion Papers - 2011

We examine trade credit links between firms as a channel of international return comovement. We model firms in different countries connected by trade credit links in segmented stock markets with asymmetrically informed investors. The model predicts that the cross-serial correlation of country...

Persistent link: https://www.econbiz.de/10008854544

Managerial Power and Rent Extraction in the Design of Executive Compensation

Bebchuk, Lucian Arye; Fried, Jesse; Walker, David I - C.E.P.R. Discussion Papers - 2002

This Paper develops an account of the role and significance of managerial power and rent extraction in executive compensation. Under the optimal contracting approach to executive compensation, which has dominated academic research on the subject, pay arrangements are set by a board of directors...

Persistent link: https://www.econbiz.de/10005114260

A Theory of Income Smoothing When Insiders Know More Than Outsiders

Acharya, Viral V; Lambrecht, Bart - C.E.P.R. Discussion Papers - 2012

We consider a setting in which insiders have information about income that outside shareholders do not, but property … rights ensure that outside shareholders can enforce a fair payout. To avoid intervention, insiders report income consistent … independent auditing mitigates the problem, implying that accounting quality can enhance investments, size of public stock markets …

Persistent link: https://www.econbiz.de/10011083832

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 real effects with respect to workout activities. We use a unique data set based on the credit files of five leading German banks, thus relying on real information used in the...

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