Using a novel dataset that links an individual’s background, education, and federal financial aid participation to her future credit records, we document that, even though it is not, and cannot be, used by credit agencies in assigning risk, family background is a strong predictor of early-career credit health (that is, an individual’s credit score when she is around 30 years old). This relation...

Abstract We examine the ‘institutional configuration’ that makes land titles work as collateral in Tanzania’s nascent credit market, through work’ of local lenders. This is effective and precarious: while lenders seek out create institutional complementarities across diverse domains, they also require higher-level regulation to help stabilise titles’ fungibility collateral. Our results contribu...

This paper studies theoretically how the cross-country differences in the institutional quality (IQ) of the domestic credit markets shape the patterns of international capital flows when such IQ differences cause productivity differences across countries. IQ affects productivity by changing productivity-agency cost trade-offs across heterogeneous investment projects, which have opposite effects...

This paper takes listed companies from 2014 to 2018 as a research sample. The results show that the independent audit opinion will affect trade credit decision of supplier enterprise. A good institutional environment can weaken impact non-standard on cost and scale credit. And industry positive correlation between cost.

Theory predicts that the accounting information transparency affects credit spreads. Given that one of the putative benefits of International Financial Reporting Standards (IFRS) is transparency of accounting information, this study evaluates the impact of IFRS on the pricing of credit spreads in the over-the-counter Credit Default Swap (CDS) market. Using a difference in differences methodolog...

This paper examines the effects of the institutional environment on West African cotton farmers’ technical efficiency (TE). First, key aspects of the cotton sector institutional environment are discussed, including input and credit access, and producers’ organisations. Then, a stochastic frontier production function, which incorporates technical inefficiency effects, is applied to farm level da...

A systematic cross-country analysis of e-commerce activity reveals that although physical infrastructure explains much of the variation in basic Internet use, e-commerce activity also depends significantly on the "rule of law" and, secondarily, on availability of credible payment channels such as credit cards. These results suggest that an institutional environment that facilitates the building...