Trade credit is a major source of financing. Over the past decade, it has represented more than 20% of the total assets of US listed firms. Different arguments have been suggested in the academic literature to explain why there is a strong industry pattern to trade credit usage (including the...

The recent important transformations of the banking sector, especially through numerous mergers and acquisitions, both in Europe and in the USA, have raised serious concerns for the financing of small business firms (SBF). Indeed, SBF are known to be heavily dependent of this financing channel...

This paper deals with the concentration of corporate bank debt. In an economy with asymmetric information, we show that the bank debt concentration with a main bank possessing informational monopoly is a reliable signal of the firm's quality for the secondary banks. Precisely, the firm's choice...

The purpose of this work is to establish what bank strategies in fixing the credit conditions are in an asymmetric information framework. In order to do this, we use a set of 8646 observations of Belgian small and medium sized businesses. The numerous empirical tests realized seem to indicate...

This article proposes an explanation of the structures of external financing by analysing the consequences of a leasing decision for unsecured creditors. A leasing decision generates two effects: the appearance of an agency cost related to the retrogradation of the existing banking claims and a...

On the stock market, the investors are not identical. The large investors like the institutional investors, have a significant financial effect and a different valuation of the firm from that of the small investors. When they purchase shares, these two groups are in competition. However, large...

"The recent important transformations of the banking sector, especially through numerous mergers and acquisitions, both in Europe and in the USA, have raised serious concerns for the financing of small businesses (SBS). Indeed, SBS are known to be heavily dependent of this financing channel but...