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Entry requires external finance, especially for less wealthy entrepreneurs, so poor investor protection limits competition. We model how incumbents lobby harder to block access to finance to entrants when politicians are less accountable to voters. In a broad cross-section of countries and...
Persistent link: https://www.econbiz.de/10011350369
. The model predicts a greater use of multiple-bank lending when banks are small relative to investment projects, firms are …
Persistent link: https://www.econbiz.de/10011584789
In response to the recent global financial crisis, the regulatory authorities in many countries have imposed stringent capital requirements in the form of the BASEL III Accord to ensure financial stability. On the other hand, bankers have criticized new regulation on the ground that it would...
Persistent link: https://www.econbiz.de/10011669026
Interest rate risk is the exposure of a bank's financial condition to adverse movements in interest rates. Changes in interest rates affect a bank's earnings by changing its net interest income and also affect the underlying value of the bank's assets, liabilities and off-balance sheet...
Persistent link: https://www.econbiz.de/10013112510
We study credit risk premia of large international banks. Credit risk premium is defined as the credit spread net of an estimate of default risk. Our findings are threefold: (1) we show that credit risk premium accounts for two-thirds of the total price of default risk since the financial...
Persistent link: https://www.econbiz.de/10013310295
contraction of funds available through credit lines and reduced investment and employment. These dampening effects are explained …
Persistent link: https://www.econbiz.de/10012899198
contraction of funds available through credit lines and reduced investment and employment. These dampening effects are explained …
Persistent link: https://www.econbiz.de/10013252076
We develop a model of endogenous lobby formation in which wealth inequalityand political accountability undermine entry and financial development. In-cumbents seek a low level of effective investor protection to prevent potentialentrants from raising capital. They succeed because they can...
Persistent link: https://www.econbiz.de/10011338011
Definition and comparison of the current business environment of the Czech and Slovakian SMEs in the selected regions are the main objectives of the article. In accordance with this objective motivational factors, status in the society, relationship to the state, level of the corruption,...
Persistent link: https://www.econbiz.de/10011820217
markets for raising start-up and growth capital. Recognising that entrepreneurial investment evaluation decision-making is a … investment criteria in South Africa from an early-stage entrepreneurial perspective. Results indicate that the rank importance … for the different investment criteria is relatively similar for VCs and BAs, and the only ranking difference observed was …
Persistent link: https://www.econbiz.de/10012990201