During 1992–2007, suppliers financed almost 10% of the total assets of U.S. listed firms. This intensive usage of trade credit is puzzling in the light of its high (implicit) costs. By arguing that trade credit use provides valuable information to outside investors, we first derive a...

In this paper, we investigate the extent in which creditor rights protection in bankruptcy induces banks to take more risk, leading to a higher level of systemic risk in the financial system. We apply ∆CoVaR, introduced by Adrian and Brunnermeier (2011), as the measure of systemic risk. Our...

The Capital Purchase Plan (CPP) is one of the main ingredients of the Paulson Plan. In accordance with CPP, U.S. federal agencies invested more than $200 billion in approximately 700 financial institutions between 2008 and 2009. This article examines whether this major public intervention helped...

This paper investigates whether loan officer's level of seniority within the bank explains credit spreads. Based on a unique hand-collected database on loan applications from SMEs to a French cooperative bank between 1996 and 2009, the study suggests that senior loan officers charge higher...

We investigate the relationship between borrower quality and the structure of the pool of banks. First, we develop a theoretical model where the size of the banking pool is a credible signal of firm quality. We argue that better borrowers seek to disclose their quality in a credible way through...

"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...