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Full-Text Articles in Business
Lending Relationships In Line-Of-Credit And Nonline-Of-Credit Loans: Evidence From Collateral Use In Small Business, Atreya Chakraborty
Lending Relationships In Line-Of-Credit And Nonline-Of-Credit Loans: Evidence From Collateral Use In Small Business, Atreya Chakraborty
Atreya Chakraborty
Lender–borrower relationships facilitate monitoring in small business loans. We investigate how the duration and scope of the bank–borrower relationship affect the decision to secure line-of-credit and nonline-of-credit loans. We find that the likelihood of collateralizing a line of credit decreases with the length of the bank–borrower relationship. For nonline-of-credit loans, however, the incidence of collateral pledge decreases with the number of lender-provided financial services used by the borrower. Our finding indicates that the mechanism through which banks obtain private information depends on the type of the loan. Pooling across loan types may dilute the impact of both the duration and …
Shareholders, Unicorns And Stilts: An Analysis Of Shareholder Property Rights, Benedict Sheehy
Shareholders, Unicorns And Stilts: An Analysis Of Shareholder Property Rights, Benedict Sheehy
Benedict Sheehy
Abstract: Shareholders rights advocates argue that shareholders have the right to control the corporation. This article examines the basis for the claims. It begins with an analysis of rights, then moves to an analysis of legal rights, which is followed by an analysis of property rights as a species of legal rights. The article then examines the historical context, rationale and development of shareholder rights which leads to the analysis of current shareholders’ rights. The article concludes with some comments and suggestions concerning future development of corporate governance thinking.