Exploiting the timing of the 2005–2006 Italian bankruptcy law reforms, we disentangle the
effects of reorganization and liquidation in bankruptcy on bank financing and firm …

We ask whether public financial aid reduces small businesses' credit constraints. To answer
the question, we analyze a policy of bank loans made from subsidized funds. Extensions of …

Abstract Information sharing and collateral are both devices that help banks reduce the cost
of adverse selection. We examine whether they are likely to be used as substitutes …

We study how a bank's willingness to lend to a previously exclusive firm changes once the
firm obtains a loan from another bank (“outside loan”) and breaks an exclusive relationship …

Banks are usually better informed on the loans they originate than other financial
intermediaries. As a result, securitized loans might be of lower credit quality than otherwise …

We offer a new test of the ex ante theory of collateral. Theory states that lenders rely less on
collateral if they have better information about borrowers. We test this by contrasting the use …

In this paper, we investigate the economy-wide effects of the collateral channel by
exploiting:(i) a legal reform in Sweden in 2004 that reduced collateral values, and (ii) a …

In most developed countries, regulators have imposed loan ceilings to subsidized
microfinance institutions (MFIs). Micro-entrepreneurs in need of above-ceiling loans are left …

A mortgage that defaults is more likely to enter foreclosure rather than renegotiation if it has
been securitized in the private non-agency market, according to previous research. We …

Many theories study how firms' cost of funding depends on reorganization and liquidation in
bankruptcy. However empirical evidence on this subject is scarce due to the difficulty in …