Trade credit is a major source of financing. Over the past decade, it has represented more than 20% of the total assets of US listed firms. Different arguments have been suggested in the academic literature to explain why there is a strong industry pattern to trade credit usage (including the...

The recent important transformations of the banking sector, especially through numerous mergers and acquisitions, both in Europe and in the USA, have raised serious concerns for the financing of small business firms (SBF). Indeed, SBF are known to be heavily dependent of this financing channel...

This study analyzes the structure of firms' bank pools in emerging economies characterized by corruption. In the proposed theoretical model, firm managers maximize an expected utility function that depends on both firm value and personal consumption. According to the weight they assign to each...

This paper deals with the concentration of corporate bank debt. In an economy with asymmetric information, we show that the bank debt concentration with a main bank possessing informational monopoly is a reliable signal of the firm's quality for the secondary banks. Precisely, the firm's choice...

The purpose of this work is to establish what bank strategies in fixing the credit conditions are in an asymmetric information framework. In order to do this, we use a set of 8646 observations of Belgian small and medium sized businesses. The numerous empirical tests realized seem to indicate...

Whether the bank-firm relationship and political connections are the substitutes, or the complements is the well-researched question on an empirical research level on credit availability. This paper studies the influences of the bank-firm relationship and political connection on firm's access to...

We examine the effect of the introduction of the euro on the level of systemic risk for countries that adopted the common currency (euro-zone countries). Our measure of systemic risk is ∆CoVaR, introduced by Adrian and Brunnermeier (2010). We analyze the 1990-2010 period, use a large...

This article proposes an explanation of the structures of external financing by analysing the consequences of a leasing decision for unsecured creditors. A leasing decision generates two effects: the appearance of an agency cost related to the retrogradation of the existing banking claims and a...