We present a theory of banking regulation affecting procedural compliance in monitoring collateral in secured debt … contracts. The theory suggests an externality which creates a gap between the socially optimal level of monitoring and the bank …’s privately optimal level. Banks can not be punished ex post for lack of monitoring or otherwise in the bad state of nature. Hence …

credit by their bank. The reduction in collateral value also precedes a decrease in bank monitoring intensity and frequency … type of collateral that is comparable to the floating lien. We explore this natural experiment to identify how collateral … determines borrower quality, loan terms, access to credit and bank monitoring of business term loans. Using a differences …

consider collateral and monitoring to be complements, the reduction in collateral precedes a decrease in bank monitoring …Collateral is one of the most important features of a debt contract. A substantial theoretical literature motivates the … use of collateral as a means to alleviate ex-ante and ex-post information asymmetries between borrowers and lenders and …

and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the benefit … of greater diversification in terms of higher monitoring dominates the costs of free-riding and duplication of efforts … less profitable, and poor financial integration, regulation and inefficient judicial systems increase monitoring costs …

acts of the agent, hence the “strange” institutions. In a modern world, with a much improved monitoring technology, we can … over-stresses his argument. Much more than monitoring in a principal-agent relationship is needed to explain the Industrial …

is positively associated with CSP and SED. On the other hand, we do not find support for the monitoring intensity of …

agency costs within the chain form of organization. Clustering may facilitate scale efficiencies in both monitoring and … without close monitoring. Several proxies for local organizational experience ("local learning") cannot account for our …