-pricing framework to value the systematic crash risk exposure of the collateral. We then apply Modigliani and Miller's (1958 …

-pricing framework to value the systematic crash risk exposure of the collateral. We then apply Modigliani and Miller's (1958 …

The ex ante theory of collateral states that better informed lenders, such as informal lenders, rely less on collateral …. We test this by contrasting the use of collateral between formal and informal lenders in the same market. Indeed, formal … lenders rely more often on collateral, controlling for conventional determinants of collateral. Moreover, better information …

to post collateral fully. The economy exhibits funding asymmetry in that deposit and borrowing have differing rates. A …