This paper examines how collateral and personal guarantees affect firms' ex-post performance employing the propensity … provide collateral to lenders are more sizeable than of borrowers that do not. (2) On the other hand, the lending attitude and … monitoring frequency of borrowers' main bank do not change significantly at the time of collateral being pledged. (3) The …

This paper examines how collateral and personal guarantees affect firms’ ex-post performance employing a propensity …-and-medium-sized borrower firms in Japan, we find that borrowers with high observed riskiness are more likely to pledge collateral. In addition …, we find that borrowers that provide collateral to lenders experience larger increases in profitability and reductions in …

asymmetries; these may be mitigated by collateral or relationship lending, possibilities often precluded to small business. We … affiliates with peer monitoring incentives. Hence, MGI willingness to post collateral signals firms credit-worthiness to banks …

This paper investigates the determinants of the use of collateral and personal guarantees in, Japan's SME loan market …. We find that firms' riskiness does not have a significant effect on the, likelihood that collateral is used. We find … long-term relationship with, their main banks are more likely to pledge collateral. These findings are consistent with the …

implies a take-it-or-leave-it choice for both contract parties and requires that borrowers' collateral amounts are positively …

asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus … collateral since this implies that firms are better screened and monitored …

This paper examines how collateral and personal guarantees affect firms' ex-post performance employing a propensity …-and-medium-sized borrower firms in Japan, we find that borrowers that provide collateral to lenders experience larger increases in profitability … and reductions in riskiness than borrowers that do not. This finding is consistent with the hypothesis that collateral …

collateral? The literature shows that unobservability of the project’s returns implies that the high-risk borrower is more … inclined to pledge outside collateral than is the low-risk borrower. However, this finding does not hold when the bank can … collateral enables the low-risk entrepreneur to select himself, but high value outside collateral has no sorting potential at all …