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lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … decision-making and contract design. In particular, bank internal borrower ratings serve to evaluate borrower quality, and the … contract design is mainly driven by aspects of relationship lending and renegotiations. We found that relationship lenders or …
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Long-term minimum return guarantees sold by European life insurers increasingly become binding as interest rates decline. While participating contracts embedding these guarantees are designed to share market risk across investor cohorts when guarantees are not binding, we study how binding...
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Trust between parties should drive the negotiation and design of contract: if parties did not trust each others … over time, we find that lower trust increases contract completeness. Not only contract complexity but also the verifiable …
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Trust between parties should drive the negotiation and design of contract: if parties did not trust each others … over time, we find that lower trust increases contract completeness. Not only contract complexity but also the verifiable …
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