Suchergebnisse

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.

AbstractPurposeThis study looks at whether credit unions, a type of microfinance, increase or decrease poverty in Cameroon from 2004 Q1 to 2021 Q4.Method/designThe fully modified ordinary least square, dynamic ordinary least square, and conical co‐integration is applied.FindingsThe findings reveal a long‐term association between credit union measures and poverty levels. The results indicate that the number of credit unions, the number of commercial bank branches, and credit to the private sector negatively relate to poverty levels. This implies that as the number of credit unions increases, the poverty level increases as the credit unions tend to exploit the poor population. Outstanding deposits positively impact poverty levels, which imply that members' deposits alleviate poverty.Research implicationsThe government should refurbish the existing programs to enhance credit unions' activities to focus more on banking the poor population especially in remote areas. The credit unions should increase deposit mobilization from the public to empower individuals and businesses. The government should regulate the number of credit unions being created to limit exploitation. The government should intervene to ensure that credit unions' policy regarding lending, interest rates, and loan recovery procedures are mutually agreed upon by the parties.Originality/noveltyLimited studies used secondary data focusing on credit unions. The studies give conflicting results: Some studies reveal that microfinance banks positively affect poverty reduction. Some indicate negative effects of microfinance on poverty reduction. Others show that microfinance institutions do not significantly influence poverty reduction. Different opinions exist among depositors and borrowers of credit unions concerning poverty alleviation. Some credit union members hold that credit unions increase poverty, while others argue that credit unions alleviate poverty.

A letter report issued by the General Accounting Office with an abstract that begins "In 1997, 4,369 corporations earned a total of $135 million in Work Opportunity Tax Credits (WOTC). The employers who earned most of the credit were large companies with gross receipts exceeding $1 billion and engaged in nonfinancial services and retail trade. GAO's analysis of state agency data for California and Texas from 1997 through 1999 showed that three percent of participating employers accounted for 82 percent of all hires of WOTC-certified workers. Many employers who participated in the tax credit program in those two states in 1999 say that, besides the opportunity to obtain the credit, their participation in the program was also greatly influenced by such factors as the need to address a labor shortage and the opportunity to be a good corporate citizen. The results of GAO's two state analysis indicate a low probability of replacing employees who were not eligible for the tax credit."