Suchergebnisse

"Legal and economic historians now emphasize the centrality of organizational law in determining the contractual boundaries of the firm. Nineteenth-century US law recognized a small set of firm types - proprietorship, partnership and corporation - and enforced the creditor rights and priorities associated with them. This paper investigates how those creditor rights and priorities influenced the availability of credit. Using a unique data set from the nineteenth century United States and borrower fixed effects, I find that partnerships paid more for credit than proprietorships. The interest rate disadvantage for partnerships was offset by their ability to finance larger and longer-horizon entrepreneurial ventures"--National Bureau of Economic Research web site

The concentration of the Nigerian financial sector has long been recognised to be an important factor affecting the financial stability and welfare at an individual level in the economy. While various studies have been conducted to examine the sensitivity of this phenomenon to macro economy, little has been done to examine the effect of concentration on credit availability in Nigeria. In addition, no study has investigated the role of remittances on the relationship between bank concentration and availability of credit. Taking motivation from the Nigerian banking consolidation exercise, this article examined the effect of remittances and bank concentration on availability of credit in Nigeria. The author employed the autoregressive distributed lag (ARDL) bound test approach for co-integration on Nigerian data for the period of 1986–2015. The results revealed that bank concentration constrains the development of financial sector in Nigeria and remittances improve the level of financial development (credit availability) in the long run but inhibit the availability of credit in the short run. The negative relationship occurs in the short run because of the regulatory framework governing international money transfers in Nigeria, which simply inhibits competition. In the long run, recipients who have received remittances from informal settings would need financial products and services in which those remittances would be banked and further improve the financial sector. It was concluded that since Nigerian financial sector remained underdeveloped, the sector could be driven by encouraging inflow of remittances into the country. Our findings also persist after batteries of robustness check.

Urban debt is a less studied area. In many cases, it is a spillover of rural farm debt. As lands and assets get eroded in rural areas, urban migration takes place in search of livelihoods. People who move to cities crowd into slums, take up whatever daily employment is on offer and form the bulk of the informal or unorganised workforce in cities. Their occupations are unregulated and beyond the pale of any legal protection. With low earnings and even lower savings, they have to contend with expenses of contingent nature like major illnesses and hospitalisations as well as expenses related to weddings, deaths and other obligatory 'social' expenditure which leads them into a vicious cycle of debt. The nature of their work precludes loans from banks, further luring them into unregulated and usurious debt traps. This study, a part of a larger study conducted in 2014, studies the prevalence of debt among informal sector workers, examines and quantifies the major expense patterns, sources of funds and availability of credit along with cost of such credit.

Abstract
With asymmetric information between investors and firms, credit availability is affected by the resale value of collateralized productive assets. If liquidation occurs, investors recover a greater value the higher the probability to find a buyer and the higher his willingness to pay to use the assets for production. We extend the idea of complementarities among firms in the same industry (as in Shleifer and Vishny, 1992) to study under which conditions credit availability is enhanced by competition in the product market when assets are industry specific.