Refinancing MFIs with market power: theory and evidence

Market Structure : Theory and Evidence

Refinancing and Decentralization: Evidence from China*

Decentralization can complement market liberalization by strengthening incentives of agents to exploit local information in response to market signals. In China, however, banks centralized lending authority following financial reforms in the mid-1990s. We offer a new theory of financial decentralization in which centralization provides a credible commitment not to refinance bad projects by redu...

Early Refinancing and Maturity Management in the Corporate Bond Market

This paper studies early refinancing activities in the corporate bond market and its implications for debt maturity structure. In additional to interest rate reduction, speculative-grade firms constantly extend maturity through early refinancing. Moreover, they take advantage of accommodating credit market conditions to extend maturity on a large scale, leading to pro-cyclical debt maturity str...

Import Competition and Market Power: Canadian Evidence

This paper estimates price-marginal cost mark-ups for Canadian manufacturing industries during the 1970s in order to assess the impact of import competition on domestic market power. The results are mixed. Based on the analysis, there is no consistent evidence that imports had a beneficial impact on competition in the Canadian market during that period. One possible explanation for this finding...

Market Liquidity—Theory and Empirical Evidence

In this paper we survey the theoretical and empirical literature on market liquidity. We organize both literatures around three basic questions: (a) how to measure illiquidity, (b) how illiquidity relates to underlying market imperfections and other asset characteristics, and (c) how illiquidity affects expected asset returns. Using a unified model from Vayanos and Wang (2010), we survey theore...