Asset-based lending, the supply of loans based on floating collateral, is an important source of funding for small .rms … firms. Close monitoring of collateral by lenders results in an informational advantage for the incumbent lender and third …

We propose a simple model of borrower optimism in competitive lending markets with asymmetric information. Borrowers in …. Third, equilibrium collateral requirements may be inefficiently high. …

seniors will not deliberately choose bad candidates if the only information asymmetry between the owner and the recruiter … information asymmetry between the owner and the senior employee regarding additional aspects of firm operations, however, moral …

to locate their activities and have private information about their efficiency level. Regulators non-cooperatively offer … any regulatory contract that satisfies information and participation constraints of banks. We show that the unique Nash …

Due to opaque information and weak enforcement in emerging loan markets, the need for collateral is high, whereas … borrowers lack adequate assets to pledge as collateral. How is this puzzle solved? We find for a representative sample from … Northeast Thailand that indeed most loans do not include any tangible assets as collateral. Instead, lenders enforce collateral …

When the information used by a principal to monitor an agent is private, and thus non-verifiable by a third party, the … information in order to collect a monetary penalty from him. Restoring credibility may lead to an extreme waste of resources … efficient outcome is feasible by exploiting the timing of private information. If the private information arrives before the …

in a two-period model with adverse selection where banks strategically commit to disclose borrower information. By doing … this, they invite rivals to enter their market. Disclosure of borrower information increases an entrant's second …

unique data set that covers almost all bank-firm relationships in Italy in the period 2004-2013, we find that, during the …