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 …

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 …

The paper investigates the use of collateral in the Argentine banking system by exploiting a rich dataset administered … cons of pledging collateral in the context of the modern asymmetric information approach to banking. Afterward, the … collateral to riskier borrowers (contrary to the signaling approach). In particular, it is found that the probability increases …

implies a take-it-or-leave-it choice for both contract parties and requires that borrowers' collateral amounts are positively … correlated with their risk. We argue that these required conditions leave little room for the signicance of credit rationing. …

). By working out the sequence of market transactions, we show that the effectiveness of collateral in avoiding equilibrium …, the separation of borrower by means of sufficient collateral does not impede the emergence of credit rationing, which … results from a coordination failure among risk-neutral banks. As a consequence, even in a risk-neutral environment with …

asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus … the willingness of MGIs to post collateral since it implies that firms are better screened and monitored …

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 …

the credit granted increases. Moreover, the data show that collateral seems to be posted by high-risk borrowers and law … risk component that generates an increase in collateral for short-term loans. Therefore, a model of "Lazy Banks" does not … risk. These results are consistent with a view of collateral as a credible mechanism for commitment against informative …