We present a theory of unsecured consumer debt that does not rely on utility costs of default or on enforcement mechanisms that arise in repeated-interaction settings. The theory is based on private information about a person’s type and on a person’s incentive to signal his type to entities other than creditors. Specifically, debtors signal their low-risk status to insurers by avoiding default ...

Existing research links CEO personality traits to a number of corporate decisions including overinvestment, external acquisitions, and earnings management. These findings raise the question of whether counterparties distinguish between differences in individual CEO behavior, and how they respond to it. We focus on two key counterparties – auditors and credit rating agencies – and examine whethe...

Existing research links CEO personality traits to a number of corporate decisions including overinvestment, external acquisitions, and earnings management. These findings raise the question of whether counterparties distinguish between differences in individual CEO behavior, and how they respond to it. We focus on two key counterparties – auditors and credit rating agencies – and examine whethe...

Firms depend heavily on trade credit. In the years 1980-2004 about 60% of all inputs to production were purchased with a delayed payment. This paper provides evidence that trade credit connection plays signi cant role in the growth stability of customers by reducing the propagation of rm-level shocks from suppliers onto their customers. On average, customer experiences about 20% lower disruptio...

This paper investigates credit supply endogeneity in the Italian environment from 1999 to 2009. The study aims to shed more light on the relationship between securitization and the Italian monetary transmission mechanism during the two most recent financial crashes: the dot-com bubble burst (1998-1999) and the subprime mortgage crisis (2008-2009). Recently many works are focused on how securiti...

The purpose of this paper is to address the determinants of trade credit in the Cameroonian context. Based on a sample of 85 Cameroonian companies observed in 2006, the econometric investigations highlight a genuine financial intermediation business close to productive activity. We used a general model incorporating both financial variables, transactional and sociocultural in order to estimate ...

We present a theory of unsecured consumer debt that does not rely on utility costs of default or on enforcement mechanisms that arise in repeated-interaction settings. The theory is based on private information about a person’s type and on a person’s incentive to signal his type to entities other than creditors. Specifically, debtors signal their low-risk status to insurers by avoiding default ...

Trade credit is an increasingly important payment behavior in real business transactions. To reduce nonpayment risks, a supplier/retailer frequently offers partial trade credit to its credit risk downstream member who must pay a portion of the purchase amount at the time of placing an order and then receives a permissible delay on the rest of the outstanding amount. This paper develops an EPQ m...

Many factors innuence a learning process and the performance of a learned classiier. In this paper we investigate the eeects of class distribution in the training set on performance. We also study diierent methods of measuring performance based on cost models and the performance eeects of training class distribution with respect to the diierent cost models. Observations from these eeects help u...

Many factors innuence a learning process and the performance of a learned classiier. In this paper we investigate the performance eeects of class distribution in the training set. We also study diierent methods of measuring performance based on cost models and the performance eeects of training class distribution with respect to the diierent cost models. Observations from these eeects help us d...