competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

-pected to reduce agency costs, perceived credit risk and thus the request for personal collateral. Trustworthiness is associated …’ assessment of the trustworthiness of owner/managers is negatively associated with the personal collateral demanded by banks … hypothesis. The results show that trust has a minor role in reducing the request of collateral. …

In his basic model of debt renegotiation, BESTER [1994] argues that collateral is more effective if high risk projects … high probability of default, that makes collateral more effective. Instead it turns out that, given the expected return …, the probability of default has no impact on the collateral's effectiveness. Moreover, a higher risk of the project caused …

In his basic model of debt renegotiation, Bester (1994) argues that collateral is more effective if high risk projects … high probability of default, that makes collateral more effective. Instead it turns out that, given the expected return …, the probability of default has no impact on the collateral's effective-ness. Moreover, an increasing risk of the project …

foreign lenders consider loans from domestic lenders as firm collateral. This implies that their lending supply is positively … associated with the volume of capital a firm is able to borrow from domestic lenders (collateral effect). On the other hand, the … supply (competition effect). Two different cases are then possible. If foreign lenders are able, in spite of the collateral …

This paper analyses the factors that characterize the collateral loans in Chile. Such analysis is motivated by the … importance of the credit access for businesses survival and the value that has the ability to pledge collateral as a mechanism to … pledge collateral on loans in Chile. In addition, since Chile is a country with an emerging economy, the results are compared …

We explore the determinants of liquidation values of collateral, focusing on the potential buyers of assets. When a fi … and risk-shifting in loan contracts. Our contribution reveals that collateral does not necessarily solve for the asset …

borrower quality is fixed and collateral quality is known. Holding all risk factors constant except collateral quality, we show … that loans on riskier collateral have higher spreads, that is, they remain riskier even though lenders require higher … suggest that maturity is not lenders' primary risk management tool. Holding loan quality constant (including collateral), we …