In this paper we test Bester's (1985, 1987) prediction about the separating role of contracts that involve both interest rates and collateral requirements in credit markets. To test this prediction we use data from natural credit markets and controlled experiments. Using a sample of credits to...

This study analyzes the effect of the reputation SMEs get in a relationship lending on the cost of next loans. A unique dataset of 734 Spanish SMEs' relationship lending provides information on a loan-by-loan basis about the ex post previous loan performance, which measures reputation. No prior...

A key question in credit markets is how to disclose borrowers’ private information. Typically, banks offer incentive compatible contracts (with collateral) to induce borrowers to disclose their private information. However, if men and women systematically differ in their risk taking behavior,...

A major characteristic of financial markets is information asymmetry. To combat its problems principals can use screening. That is, they can offer the clients a menu of contracts and infer their risk level from their choices. If the pattern of choices that clients with different risk level make...

The current collapse of credit markets has left small and medium enterprises (SMEs) facing severe credit rationing. The practice of screening borrowers by risk level has become a paramount consideration for both lenders and firms. This paper represents the first empirical test of the screening...

Statistical information is crucial for managerial decision making. The decision-making literature in psychology and mathematical cognition documents how different statistical formats can facilitate certain types of decisions. The present analysis is the first of its kind to assess the impact of...

Statistical information is crucial for managerial decision making. The decision-making literature in psychology and mathematical cognition documents how different statistical formats can facilitate certain types of decisions. The present analysis is the first of its kind to assess the impact of...

This special issue discusses the Spirit of Strategy (S.O.S): The New S.O.S for Competitive Business. The special issue blends contextual information and cognitive knowledge from Global Innovation and Knowledge Academy (GIKA) contributions to improve decisions, tasks, performance, and outcome...

This study examines the features of young innovative companies (YICs) that enable their access to public policies in the form of subsidies. Through this analysis, the study determines the profile of YICs that receive public innovation aid. The study thus establishes whether governments design...

Analysis of entrepreneurs' motives in the framework of organizational behavior theory is a popular research area regarding female entrepreneurship. This study analyzes women entrepreneurs' motives (propensity for risk, finding a work–life balance, desire to develop business skills, need to...