Trade credit is broadly used by firms around the world. Nevertheless, its use by firms in different locations is not homogeneous. A possible explanation for this are heterogeneous levels of creditor protection or quality in accounting systems among the different countries. Both features may...

This study is an extension of current research on insolvency diagnosis. We intend to demonstrate that in small firms, the relevant information for the preventive diagnosis of insolvency can be synthesized in a model built upon a more reduced number of economic and financial ratios than the ones...

This paper proposes an agency theory to explain trade credit policy. According to this theory we have developed an agency model based on the adverse selection and moral hazard phenomena arising from the relation between sellers and buyers. This model has been estimated by using panel data...

This paper argues that a new topic on investment inefficiencies should be introduced in the teaching of Corporate Finance. First, we analyze underinvestment processes resulting from the conflict between shareholders and bondholders and the conflict between current and prospective shareholders,...