The credit crisis of 2007 and 2008 has thrown much focus on the models used to price mortgage backed securities. Many institutions have relied heavily on the credit ratings provided by credit agency. The relationships between management of credit agencies and debt issuers may have resulted in conflict of interest when pricing these securities which has lead to incorrect risk assumptions and val...

This paper explores a reason why retailers pay such large merchant fees to credit card issuers. Credit cards as media of exchange are introduced to a New Monetarist model in which exchange occurs in alternating centralized and decentralized markets. Sellers who exert high (low) effort produce a good with a high (low) probability of being high quality. The quality of the good is revealed only af...

Instruments for credit risk transfer arise endogenously from and interact with optimizing behavior of their users. This is particularly true with credit derivatives which are usually OTC contracts between banks as buyers and sellers of credit risk. Recent literature, however, does not account for this fact when analyzing the effects of these instruments on banking. The present paper closes this...

Factoring is explicitly linked to the value of a supplier’s accounts receivable and receivables are sold, rather than collateralized, and factored receivables are not part of the estate of a bankrupt firm. Therefore, factoring may allow a high-risk supplier to transfer its credit risk to higher quality buyers. Empirical tests find that factoring is larger in countries with greater economic deve...

In the virtual network environment, the C2C e-commerce has some problems in product quality, service, credit speculation. At present the credit appraisal system offered by domestic C2C ecommerce website ensures the network security to a certain extent while it has some problems in identity verification, evaluation rules and model, credit of buyers and sellers and so on. Focused on the largest n...

This research examines whether temporal orientation moderates the impact of compulsive buying tendencies (CBT) on credit card debt. Participants completed the consideration of future consequences scale, a compulsive buying scale, and reported their credit card debt. Results revealed that CBT mediated the relationship between concern with immediate consequences and credit card debt, and high con...

In reality, a seller (e.g., a supplier or a manufacturer) frequently offers his/her buyers trade credit (e.g., permissible delay in payment). Trade credit reduces the buyer's holding cost of inventory and hence attracts new buyers who consider it to be a type of price reduction. On the other hand, granting trade credit also increases the seller's opportunity cost (i.e., the loss of capital oppo...

this study focused to identify the likelihood factors affecting on farmers’ higher gain from paddy marketing in the north central province of sri lanka, where the main paddy cultivation area of the country. the required data was drawn from the field survey carried out in three irrigation systems covering 257 farmers during july to august 2010. the empirical logit model was used to assess factor...

This paper considers a two-level supply chain consisting of a manufacturer and two buyers. The manufacturer produces one type of products at a finite rate and replenishes them to the buyers. Each buyer’s demand is sensitive to his selling price and the backorder is allowed at the buyers. Moreover, it is assumed that the buyers delay paying for goods to the manufacturer and two types of delay in...