Bijapur, M. - Business School, University of Exeter - 2000
which borrowers have incentives to repudiate their debt obligations. Borrowers with short credit histories face the poorest … liquidation. However, over time if borrowers repay debt on all dates, they will establish a good credit history. This may improve … their incentives, such that they will repay debt because they are concerned about their reputations for being a good credit …