This paper develops a model in order to explore how a banks equity stake in a competitor of a borrower affects the financing relationship with the borrower and product market outcomes.

This paper develops a contracting framework in order to explore the effects of credit derivatives on banks incentives to monitor loans, their incentives to intervene, and, ultimately, borrowers incentives to perform.

This paper considers the effects of strategic substitutabilities on performanceand incentives in venture capital financing. The analysis points to a subtlelink between two pivotal roles of venture capitalists: (i) monitoring venturesand setting performance incentives...