that banks require collateral from observably riskier borrowers (lender selection effect), while lower risk premiums arise … relation between loan risk and collateral. Specifically, we posit that different economic characteristics or types of … collateral pledges may be associated with the empirical dominance of the four different risk-collateral channels implied by …

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 …

empirical relation between collateral and loan risk. We posit that certain economic characteristics of collateral may be … associated with the empirical dominance of different risk-collateral channels implied by economic theory, namely the “lender … predictions regarding the empirical relations between collateral and loan risk. For our sample of commercial loans, we find that …

collateral, while the percentage of loans coming from foreign (public) banks has a negative (positive) impact. These latter …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 ; asymmetric information ; banks ; small business ; credit scoring …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 …

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 …

We examine the role of collateral in a dynamic model of optimal credit contracts in which a borrower values both … the role collateral as a deterrent to manipulation. Some assets, those that generate consumable services will necessarily …