The determinants of microborrower success, focusing on the influence of social capital and neighborhood effects on earning differentials among borrowers, are explored.A cross-sectional data set is compiled using survey information, as well as administrative files, from small businesses that...

Firm entry and exit decisions are central to theories of market organization and the firm, and to the efficiency of a competitive market environment. Timely exit by “inefficient” firms is essential for the reallocation of economic resources from lower-value to higher-value users. If firm...

Firm entry and exit decisions are central to theories of market organization and the firm, and to the efficiency of a competitive market environment. Timely exit by “inefficient” firms is essential for the reallocation of economic resources from lower-value to higher-value users. If firm...

Abstract The writings of Ronald Coase, along with those of Armen Alchian and Harold Demsetz, on the theory of property rights, transaction cost economics, and the economics of institutions have yielded powerful insights and transformed many areas of economics. The seminal paper of Ronald Coase...

We find that firms that regularly access public debt (bond) markets are more likely to pay a dividend and subsequently follow a dividend smoothing policy than firms that rely exclusively on private (bank) debt. In particular, firms with bond ratings follow a traditional Lintner (1956) style...

This paper investigates the effect of corporate diversification on the pricing of bank-loan contracts. We find that diversified firms have significantly lower loan rates than comparable focused firms, and we find no evidence that diversified firms are subject to more restrictive non-price...