We show how trade credit use depends on the value of collateral in a repossession, as well as the extent to which firms face adverse selection problems when dealing with an outside investor. The theory explains: why trade credit is short term credit, why firms simultaneously take and extend credit to other firms with similar levels of creditworthiness, why firms whose prospects start to deterio...

Liquid assets play an important role in the financial system. They are generally defined as financial assets, such as cash and government securities, that can be readily used to fund payments, even in stressed market conditions. These assets are central to liquidity and credit risk management in financial markets. They are commonly used as collateral to obtain short-term funding and manage coun...

Using staggered changes to debt contract enforcement costs in India, we estimate it’s causal effect on financing and asset maturity. A reduction in enforcement costs is associated with an increase in long-term debt and a decrease in short-term debt and trade-credit. The increase in debt maturity is confined to firms that borrow from multiple and diverse set of lenders and to smaller firms. Firm...

the purpose of this study was twofold: (a) to assess the retention of two word types (synonyms and homonyms) in the short term memory, and (b) to investigate the effect of these word types on word learning by asking learners to learn their persian meanings. a total of 73 iranian language learners studying english translation participated in the study. for the first purpose, 36 freshmen from an ...

objective: for decades, exercise has been considered as a cornerstone for managing diabetes. the current study aimed to determine the effects of short-term exercise on blood glucose, lipids and hba1c in type-2 diabetes mellitus. materials and methods: a total of 61 diabetic patients were randomly selected. later, subjects with capability of doing exercise took part in a special four-week exerci...

A Fair Queueing Algorithm is proposed for data services in an integrated voice/data CDMA system. We introduce short-term and long-term fairness concepts to allocate data users fairly. Using these concepts, we propose Weighted Fair Queueing with Status Control(WFQS) in the consideration of a Generalized Processor Sharing(GPS) ¤uid-¤ow model. This proposed scheme allocates resources using channel...

The enactment of the Cooperative credit societies Act, 1904 gave a definite structure for cooperatives in India. Although era started long ago, till date they are considered inept with commercial banks providing quality services to their customers. Lack professionalism, Limited area operations, technical knowledge, Poor customer can be as hindrances cooperative institutions also criticized poli...

We describe and contrast three different measures of an institution’s credit risk. “Insolvency risk” is the conditional probability of default due to deterioration of asset quality if there is no run by short term creditors. “Total credit risk” is the unconditional probability of default, either because of a (short term) creditor run or (long run) asset insolvency. “Illiquidity risk”is the diff...

The recent string of accounting scandals highlights the need for bond investors to reconsider the informational assumptions underlying traditional models of default. In these models it is implicitly assumed that the information used to calibrate and run the model is publicly available. In reality, model inputs and parameters are uncertain. We develop a class of cause and effect default models b...