The global credit crisis of 2008 provides a unique opportunity to study the e¤ects of …nancing constraints on corporate behavior. Based on standard economic priors, we investigate whether this credit supply shock has a di¤erential impact on the real and …nancial policies of credit constrained …rms. In contrast to previous research, which has used proxies such as …rm size and credit ratings to m...

We use a game theoretical framework to analyze the intraday behavior of banks with respect to settlement of interbank claims in a real-time gross settlement setting. The game played by banks depends upon the intraday credit policy of the central bank and it encompasses two well-known game theoretical paradigms: the prisoner’s dilemma and the stag hunt. The former arises in a collateralized cred...

In modern retail market environment, electronic commerce has rapidly gained a lot of attention and also provides instantaneous transactions. In electronic commerce, credit card has become the most important means of payment due to fast development in information technology around the world. As the usage of credit card increases in the last decade, rate of fraudulent practices is also increasing...

This paper examines to what extent credit ratings directly affect capital structure decisions. The paper outlines discrete costs/benefits associated with firm credit rating level differences, and tests whether concerns for these costs/benefits directly affect debt and equity financing decisions. The tests find that firms near a rating upgrade or downgrade issue less debt relative to equity than...

Outreach and development throughout the Fall 1997 semester led to the Spring 1998 piloting of the first three courses (Customer Behavior, Learning and Health Promotion) to offer the Fourth Credit Option. To stimulate interest in this new program, a direct mailer was sent to 82 students enrolled in the courses offering a service-learning component and in-class presentations were made to promote ...

This paper investigates the effect of credit constraints on the cyclical behavior of the composition of investment and the implications for growth and volatility. We first consider a simple model in which firms engage in two types of investment, short-horizon productive projects (capital) and long-horizon growth-promoting projects (R&D). Under complete markets, R&D tends to be countercyclical, ...

The aim of this paper is to examine whether herd behavior exists or not between di®erent types of Japanese banks. Using data of loans outstanding by types of banks from 1980 to 2000, we investigate statistical causality between loans from di®erent types of banks in Japan. Time-series analysis manifested the causality from city banks to regional banks, from long-term credit banks to city banks, ...

Online P2P lending marketplaces match individual lenders and borrowers for unsecured loans via real-time auction without financial institutions as an intermediary. This paper aims to build up a theoretical framework from the perspectives of informational social influence and herding behavior to explain how individual investors’ participation of online financial community influence their credit ...

Conventional credit card transactions are not consistent with Islamic principles, as exemplified by the Islamic banking system and the ‘Murabaha sale’. On the other hand, EMV-compliant IC (Integrated Circuit) cards have been developed to secure traditional Point of Sale (POS) transactions. Thus, if Islamic principles are to be applied to card payments, a new and secure card payment process is r...

This paper explores empirical linkages between credit unions’ (CUs’) policies and their financial perfomance, as measured by loan delinquency and profitability, using a unique micro dataset of credit unions in three Latin American countries. The estimated translog profit function is generalized using a slack variable concept that parameterizes any systematic deviation from profitmaximizing beha...