credit by their bank. The reduction in collateral value also precedes a decrease in bank monitoring intensity and frequency … type of collateral that is comparable to the floating lien. We explore this natural experiment to identify how collateral … determines borrower quality, loan terms, access to credit and bank monitoring of business term loans. Using a differences …

consider collateral and monitoring to be complements, the reduction in collateral precedes a decrease in bank monitoring …Collateral is one of the most important features of a debt contract. A substantial theoretical literature motivates the … use of collateral as a means to alleviate ex-ante and ex-post information asymmetries between borrowers and lenders and …

credit by their bank. The reduction in collateral value also precedes a decrease in bank monitoring intensity and frequency … to monitor. -- Collateral ; credit rationing ; differences-in-differences ; floating lien ; loan contracts ; monitoring … type of collateral that is comparable to the floating lien. We explore this natural experiment to identify how collateral …

We show that collateral plays an important role in the design of debt contracts, the provision of credit, and the … incentives of lenders to monitor borrowers. Using a unique dataset from a large bank containing timely assessments of collateral … values, in conjunction with a legal reform that exogenously reduced those values, we find that the bank responded to this …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …

Collateral is a widely used, but not well understood, debt contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant, although the ex ante theories are also valid for customers with …

affiliates with peer monitoring incentives. Hence, MGI willingness to post collateral signals firms credit-worthiness to banks … asymmetries; these may be mitigated by collateral or relationship lending, possibilities often precluded to small business. We … Institution (MGI). We test whether firms affiliated to MGIs pay less for credit, due to a joint responsibility that provides …