This paper studies the decision of firms to extend trade credit to customers and its relation with their financing decisions. The authors use a novel firm-level database of Chinese SMEs with unique information on market power in both output and input markets and on the amount, terms, and payment...

This paper explores economic informality and how it relates to digital financial inclusion. It focuses specifically on the potential role that digital financial services-including those accessed through mobile phones and the internet can play in encouraging businesses to formalize their...

The reach of the financial sector in Turkey is wide - as measured by account penetration, use of electronic payments, and credit card ownership - relative to both developing and high-income countries. The gender gap in Turkey for account ownership is 49 percentage points, the highest rate among...

This paper analyzes the relation between the quality of the legal enforcement of loan contracts and the allocation of credit to households, both theoretically and empirically.

The paper investigates the determinants of trade credit and its interactions with borrowing constraints and the input combination of the firm, within an incomplete contract setting in which firms use a two-input technology and collateralised credit contracts. Assuming that the supplier is better...

Using a panel data set of U.S. non-financial firms with geographically segmented firm-level information on currency exposures, exchange rates, and foreign currency derivatives, we document that managers adjust derivatives holdings in response to past foreign exchange returns. We interpret this...

This paper analyzes the relation between the quality of the legal enforcement of loan contracts and the allocation of credit to households, both theoretically and empirically. We use a model of household credit market with secured debt contracts, where the judicial system affects the cost...

In both the subprime crisis and the euro-area crisis, regulators imposed bans on short sales, aimed mainly at preventing stock price turbulence from destabilizing financial institutions. Contrary to the regulators' intentions, financial institutions whose stocks were banned experienced greater...