Showing 1 - 10 of 34
This paper argues that the strategic use of debt favours the revelation of information in dynamic adverse selection problems. Our argument is based on the idea that debt is a credible commitment to end long term relationships. Consequently, debt encourages a privately informed party to disclose...
Persistent link: https://www.econbiz.de/10005772121
We model a Systemically Important Financial Institution (SIFI) that is too big (or too interconnected) to fail. Without credible regulation and strong supervision, the shareholders of this institution might deliberately let its managers take excessive risk. We propose a solution to this problem,...
Persistent link: https://www.econbiz.de/10010554845
The paper analyzes the determinants of the optimal scope of incorporation in the presence of bankruptcy costs. Bankruptcy costs alone generate a non-trivial tradeoff between the benefit of coinsurance and the cost of risk contamination associated to joint financing corporate projects through...
Persistent link: https://www.econbiz.de/10008560464
The use of debt to finance risky entrepreneurial-firm projects is rife with informational and contracting problems. Nonetheless, we document widespread lending to startups in three innovation-intensive sectors and in early stages of development. At odds with claims that the secondary patent...
Persistent link: https://www.econbiz.de/10010940078
We explain why European trucking carriers are much smaller and rely more heavily on owner-operators (as opposed to employee drivers) than their US counterparts. Our analysis begins by ruling out differences in technology as the source of those disparities and confirms that standard hypotheses in...
Persistent link: https://www.econbiz.de/10005572570
Recent decisions by the Spanish national competition authority (TDC) mandate payment systems to include only two costs when setting their domestic multilateral interchange fees (MIF): a fixed processing cost and a variable cost for the risk of fraud. This artificial lowering of MIFs will not...
Persistent link: https://www.econbiz.de/10005572571
Spanish banking historiography asserts that the largest banks performed in the twentieth century as though they constituted a monopoly. One of their main coordination schemes would have been a network of interlocking bank directors that would include most of the financial firms. Evidence...
Persistent link: https://www.econbiz.de/10005572667
The largest fresh meat brand names in Spain are analyzed here to study how quality is signaled in agribusiness and how the underlying quality -assurance organizations work. Results show, first, that organizational form varies according to the specialization of the brand name. Publicly-controlled...
Persistent link: https://www.econbiz.de/10005572671
El objetivo de este trabajo es discutir y analizar el concepto de la responsabilidad social corporativa (RSC) desde la teoria económica. Para ello usamos un modelo sencillo que nos permite clarificar algunos aspectos del debate que rodea la RSC. Observamos como la motivación subyacente en las...
Persistent link: https://www.econbiz.de/10005771935
We analyze empirically the allocation of rights and monetary incentives in automobile franchise contracts. These contracts substantially restrict the decision rights of dealers and grant manufacturers extensive contractual completion and enforcement powers, converting the manufacturers, de...
Persistent link: https://www.econbiz.de/10005772089