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We compare the investment of standalone firms across regions after a positive shock to the investment opportunities generated by a large-scale highway development project. We show that the standalones' investment sensitivity is lower in regions with a higher density of business groups in the local area. We investigate mechanisms driving our results and find support for a financing mechanism whereby banks allocate capital preferentially to group-affiliated firms in responding to the increase in credit demand. Overall, our study documents that business groups have spillover effects on standalone firms. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]

We propose a model of strategic renegotiation in which businesses are sequentially interconnected through their liabilities. This financing structure, which we refer to as a credit chain, gives rise to externalities, as each lender's willingness to provide concessions to its borrower depends on how this lender's own liabilities are expected to be renegotiated. We highlight how government interventions aimed at preventing default waves should account for private renegotiation incentives and interlinkages. In particular, we contrast the consequences of targeted subsidy and debt reduction programs following economic shocks, such as pandemics and financial crises. [ABSTRACT FROM AUTHOR]

The recycling and remanufacturing of materials is an important method of improving the efficiency of resource utilisation. However, it is often subject to financial constraints that increase the risk of chain breakage in the closed-loop supply chain of recycling and remanufacturing. Furthermore, market uncertainty exacerbates this risk. Consequently, it is necessary to investigate different financing models for the supply chain. In this paper, we utilise a closed-loop supply chain comprising a risk-averse manufacturer, a capital-constrained retailer and a remanufacturer responsible for recycling and remanufacturing as a case study. We employ game theory and mean-variance theory to investigate the financing strategies of the closed-loop supply chain under capital constraints. Firstly, a financing decision model in which the retailer has the ability to obtain bank loans is constructed as a reference model. On this basis, the financing model of commercial credit financing and the combined financing model of equity transfer and bank financing are considered separately in order to explore the impact of the retailer's financing strategy on heterogeneous product pricing and risk-averse supply chain returns. The computational results demonstrate that the manufacturer provides financial support to the remanufacturer by reducing the patent license fee, which enables the remanufacturer to invest more resources in recycling activities and, consequently, enhances the efficiency of resource utilization within the supply chain. The simulation results indicate that the retailer and the remanufacturer prefer the commercial credit financing model, although the combined strategy of equity transfer and bank financing can result in gains. It is also noteworthy that the manufacturer's risk aversion benefits not only the entire supply chain but also consumers. [ABSTRACT FROM AUTHOR]

The study was conducted to evaluate the impact of capital structure on the credit risk of Vietnamese commercial banks in 2012–2020. The variables representing the capital structure of banks are the ratio of customer deposits to total assets (CDEP) and non-deposit liabilities to total assets (NDEP). The study uses the non-performing loan ratio on total outstanding loans (NPL) as a proxy variable for credit risk. By using Pooled OLS, FEM, REM, FGLS, and SysGMM methods, the research results show that the CDEP positively impacts credit risk. Meanwhile, the NDEP has a negative impact on the credit risk of Vietnamese commercial banks. On that basis, the study proposes measures to reduce credit risk for Vietnamese commercial banks. [ABSTRACT FROM AUTHOR]

This paper investigates whether banks' information technology (IT) can substitute for local branch presence in the provision of small business credit. Our identification strategy relies on loan-level data and the unique institutional features of the Italian public guarantee scheme during COVID-19. Despite the availability of online applications and low screening incentives, small business lending remains local even for first-time borrowers. However, IT partly mitigates the impact of local branch presence: banks with better IT provide more, cheaper, and faster guaranteed loans and lend more in areas where they have no bank branches, especially to first-time borrowers. This paper was accepted by Victoria Ivashina, finance. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4957. [ABSTRACT FROM AUTHOR]

This paper uses matched data from the CSMAR database and the China City Statistical Yearbook through a fixed effects model to examine the impact of business credit environment on small and medium-sized enterprises (SMEs) exports at the city level in China. Considering the possible endogenous problems, this paper chooses the number of scholars in Ming and Qing dynasties as the instrumental variable of urban commercial credit environment. The empirical results show that: Firstly, the improvement of urban business credit environment has a significant contribution to the export growth of enterprises; Secondly, the mechanism of the role of urban business credit environment on SMEs exports is mainly expressed through promoting R&D investment and enhancing market dynamics; Thirdly, the business credit environment is more obvious to state-owned enterprises, eastern regions and cities with less trade freedom. With the development of urban business credit environment, individuals or companies join the competition in the industry through new start-ups to stimulate corporate exports, and existing SMEs promote corporate exports through local preferential policies, increased investment in R&D, and optimized innovation policies as well as resource allocation. [ABSTRACT FROM AUTHOR]

There are certain times in our economic and financial environments when it makes sense to assess carefully and dispassionately where we are in the credit cycle and how this cycle relates to the business cycle. Now, mid-2024, is one of those times, as the economic uncertainties are at substantial levels. This note reflects my long history of studying credit cycles dating back to the early 1970s. My current assessment is that the Benign Credit Cycle we have enjoyed since 2010, with the exception of a few months in 2016 and early 2020, ended in 2023. We recently reached an inflection point for an average credit risk scenario. This assessment is based on an analysis of a number of historical indicators over the last 50 years. This conclusion is tempered by the possibility that the U.S. credit picture will continue its heightened risk trend toward a Stressed Scenario by the end of 2024, and combined with a "hard-landing" economic recession, we could witness another financial-credit crisis. [ABSTRACT FROM AUTHOR]

Using a large publicly available dataset, we examine the extent of difficulty faced by marginalized caste entrepreneurs from the unorganized sector in India when trying to access formal credit for their small businesses. Contrary to the expectation that a perceived social vulnerability would translate to more difficult credit access, we find that entrepreneurs from marginalized castes are in fact more likely to obtain credit from the formal financial system. This result on the extensive margin of credit could be interpreted as the formal financial system's positive bias towards the marginalized castes. However, when we focus on the actual loan amounts received, we find that all else being equal, entrepreneurs from marginalized castes receive significantly lower loan amounts. This result on intensive margin of credit could potentially be interpreted as evidence of negative discrimination by the formal financial system. Therefore, determining whether financial inclusion policies for marginalized caste entrepreneurs have been successful yields answers both ways, depending on whether we look at extensive or intensive margin of credit. This finding has serious implications for a good design, monitoring and evaluation of financial inclusion policies (such as mandatory lending within affirmative action programmes or priority sector lending) for borrowers from marginalized communities. [ABSTRACT FROM AUTHOR]

This paper analyzes empirically the existence of the credit channel of monetary policy in Mexico, that is, the relationship between changes in the target interest rate and variations in credit granted by commercial banks. The study combines aggregate information with data from the individual balance sheets of commercial banks and conducts a panel data regression analysis. The analysis is performed for total credit and its components (business, consumer, and mortgage). Additionally, by using banks' accounting information, it explores whether the transmission mechanism occurs on the supply side. It is found that there is a negative and economically significant relationship between interest rate and credit, and such a relationship is established for different types of credit. Furthermore, evidence suggests that the transmission mechanism operates on the supply side, as banks with more robust balance sheets exhibit greater resilience to changes in the interest rate. [ABSTRACT FROM AUTHOR]

The green credit policy (GCP) is an institutional framework aimed at guiding enterprises towards green transformation and promoting high-quality development, which serves as a crucial tool for supporting the establishment of a green technology innovation system. In this study, utilizing the green credit guidelines as a quasi-natural experiment and constructed a continuous difference-in-difference (DID) model, examines the impact of GCP impact on enterprise green innovation and its internal mechanisms by analyzing data from Chinese A-share listed companies between 2006 and 2021. Our findings indicate that the GCP had a significant impact on enterprise green innovation, inhibiting companies from independently developing green innovation while promoting joint green innovation with other institutions; These results were robust and consistent, even after conducting several sensitivity analyses; This mechanism indicate that the commercial credit plays an important regulatory role in the process of GCP affecting green innovation of enterprises and the financing constraints act as an intermediary factor in the process of GCP affecting green innovation. Based on our research, we offer policy recommendations aimed at improving the GCP and fostering a market-oriented green technology innovation system. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to analyze the financial inclusion strategy carried out by the government to help MSMEs improve their competitiveness. Financial inclusion as a dependent variable uses three dimensions, namely the usage dimension, the access dimension and the quality dimension. Design/Methodology/Approach: This study uses MSMEs credit as a mediation variable. The sample studied was 61 MSMEs in the special region of Yogyakarta, Indonesia. The data analysis tool uses a path analysis model processed with Smart-PLS. Findings: The results showed that the usage dimension has a significant positive effect on business credit while the access and quality dimensions do not affect business credit. Business credit has a significant and positive effect on increasing the income of MSMEs and mediate the usage dimensions to increase the income of MSMEs. Business credit is unable to mediate the access dimension and the quality dimension to increase the income of MSMEs. Conclusion: The lack of optimization of the use of banking products by MSMEs is a factor that needs to be considered so that MSMEs can develop with the support of financial inclusion. Research Limitation: There is no integrated MSME data, so we cannot see the condition of MSMEs in Yogyakarta Indonesia as a whole. Practical Implications: The government must play an active role in addressing financial inclusion and financial literacy in MSMEs before facilitating the credit application process. MSMEs need to be taught about business productivity and how to manage finances. Contribution to the Literature: This research can be used as a reference for future researchers. [ABSTRACT FROM AUTHOR]

The commercial bill, as a regulated commercial credit mode, offers better creditor protection, more financing channels, and stronger bargaining power in financing. This paper creatively constructs bills receivable index in the micro level of enterprises and examines the potential impact of billing of accounts receivable on the financing constraints faced by enterprises. This paper also explores the mechanism that causes the impact and check whether the establishment of the Shanghai Commercial Paper Exchange Corporation (SHCPE) has had positive effects. The results show that billing can alleviate the financing constraints of enterprises due to its benefits offered by the commercial bill. Furthermore, the establishment of the Shanghai Commercial Paper Exchange Corporation (SHCPE) can lead to the development of a standardized and transparent bill market, further alleviating the financing constraints. The study also reveals that billing of accounts receivable affects financing constraints mainly by enhancing the quality of debt-like assets and reducing information asymmetry between enterprises and the outside world. For enterprises with longer maturity structure, the effect of billing on the alleviation of financing constraints is more significant. [ABSTRACT FROM AUTHOR]

Purpose: The marginalisation of female entrepreneurs in accessing credit is well documented. Yet, how female entrepreneurs navigate through the marginalisation to gain funding is under-explored. Design/methodology/approach: The authors address this gap using qualitative data from 30 female entrepreneurs in three neighbourhoods with varying socio-economic characteristics in Ghana's capital, Accra. Findings: The authors find a marked aversion to bank loans among respondents. Consequently, they nurtured trust in their social circles in order to facilitate access to informal credit from internal (e.g. family and friends) and external (e.g. trade credit, associations and religious organisations) sources. This aversion to loans from formal financial institutions (FFIs) had a socio-cultural aspect, including cumbersome application procedures, a deep-rooted fear of the social consequences of defaulting and religious prohibition against interest payment for Islamic traders. Social implications: This paper shows that providing formal access to credit is not enough to support women's entrepreneurship if the socio-cultural factors inhibiting women's access to credit from FFIs are not addressed. Originality/value: The findings suggest that trust is an important factor that bridges the gap in female entrepreneurs' access to funding given their heavy reliance on informal sources of funding. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0090 [ABSTRACT FROM AUTHOR]

We provide new evidence that disruptions in firms' access to credit during the Global Financial Crisis significantly affected product innovation in the consumer goods sector. We combine highly granular retail scan data with lending data and find that credit-constrained firms introduced fewer new products, those products were less novel, and new products sold less well. Overall, these findings suggest that disruptions to credit markets impair firms' ability to compete for profits through new product offerings. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Green credit regulation may increase the operating uncertainty and worsen the financial reporting quality for pollution intensive firms. Literature mentions that enhanced information asymmetry would trigger more irrational trading and lead to a decrease in the market efficiency, which is worth investigating under green credit regulation. Using the data of China's A-share listed firms from 2009 to 2015, we study the relationship between green credit regulation and market efficiency based on a difference-in-differences analysis. It finds that green credit regulation reduces market efficiency of pollution intensive firms. Mechanism tests show that policy effects are more pronounced in firms with higher operating uncertainty, greater information asymmetry and stocks with more irrational traders. This study not only contributes to a deeper understanding of the impact of green credit policies on business and stock markets based on irrational theory, but also provides valuable guidance for green finance and economic development. [ABSTRACT FROM AUTHOR]

This study examines the financial determinants that influence research and development (R&D) investments, using a sample of 3588 Chinese listed firms over the period 2009–2021. Based on a concise theoretical framework, three hypotheses are proposed, with a particular emphasis on the role of commercial credit in driving R&D investment. Then, a multi-model identification strategy is adopted to control for sample selection bias and the endogeneity issue. This paper concludes that commercial credit and bank loan both act as impediments to firms' R&D investment, irrespective of investment selection or intensity. In contrast, internal financing is beneficial to firms' R&D investment. Moreover, some firm-level characteristics, such as firm size, age, capital intensity, productivity, ownership, and geographical location, matter for firms' R&D investment. The findings have important policy implications for new emerging economies that seek to implement financial reform and innovation-driven strategies. Firstly, more efforts are needed to broaden financing channels and reduce financing discrimination against small- and medium-sized enterprises. Secondly, governmental authorities should undertake the responsibility of supervising credit rating agencies to ensure that they adhere to principles of transparency, fairness, and equity. Finally, policymakers should take an active role in advancing innovation-driven strategies by increasing financial support and enhancing the endogenous driving force of innovation. [ABSTRACT FROM AUTHOR]

We study the impact of the risk retention rule - requiring 5% of underlying credit risk for commercial mortgage backed securities - on commercial real estate markets. Since the primary objective of this rule is for the deal sponsors to have skin in the game, we expect that underwriting standards should tighten following the implementation of the rule. Consistent with this notion, we find the reform led to a decrease in price premium and probability of rating shopping by the sponsors, as well as longer time-to-securitization and lower default probability. We also show that the Dodd-Frank risk retention rule can impact banks' credit supply by curtailing credit growth. As a result, we provide novel evidence on the effect of the risk retention rule on underwriters most exposed to the regulation. [ABSTRACT FROM AUTHOR]

Analyzing hand-collected credit agreements for a sample of middle-market firms over 2010–2015, we find that one-third of all loans are directly extended by nonbank financial intermediaries. Two-thirds of such nonbank lending can be attributed to bank regulations that constrain banks' ability to lend to unprofitable and highly levered borrowers. Firms with negative EBITDA and debt/EBITDA greater than six are 32 |$\%$| and 15 |$\%$| more likely to borrow from nonbanks. These firms pay significantly higher interest rates, especially following the 2013 leveraged loan guidance revisions. Nonbank borrowers also receive different nonprice terms compared to firms borrowing from banks. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

This research aims to find out whether People's Business Credit has an effect on the development of MSMEs in Medan Deli subdistrict in Medan City, to find out whether EMarketing has an effect on the development of MSMEs in Medan Deli subdistrict in Medan City, and to find out whether People's Business Credit and E-Marketing have an effect on development of MSMEs in Medan Deli sub-district in Medan City. The type of data for this research is quantitative data. Data analysis techniques in this research are validity test, reliability test, descriptive statistics, classic assumption test (normality test, multicollinearity test, heteroscedasticity test), multiple linear regression analysis, hypothesis testing (t test, f test), and coefficient of determination. The results of this research state that the influence of people's business credit and e-marketing on the development of MSMEs in Medan Deli subdistrict in Medan City is shown by the results of multiple linear regression analysis which means that the variables of people's business credit and e-marketing together have an influence on the development of MSMEs in Medan district. Deli in Medan City. [ABSTRACT FROM AUTHOR]

Most emerging economies are in a transition period, and an imperfect institutional environment will lead to inefficient supervision mechanisms in the digital economy. Based on data representing the experiences of China's listed commercial banks from 2013 to 2021, this study empirically examines the impact of the digital economy on credit risk by using a panel fixed-effect model. The findings indicate that the development of the digital economy helps to reduce credit risk faced by commercial banks. Institutional variables, such as financial supervision and the legal institutional environment, have significant mediation effects of the digital economy. By increasing the intensity of financial supervision and improving the legal institutional environment, the digital economy can reduce the credit risk faced by commercial banks. Interestingly, the effect of the digital economy on credit risk is not uniform across all banks. State-owned commercial banks benefit more from the digital economy in terms of reducing their credit risk than on non-state-owned banks. The inhibitory effect of the digital economy on the credit risk of commercial banks is significant in eastern China but not in central and western China. [ABSTRACT FROM AUTHOR]

Crop insurance protects lenders by increasing the likelihood of loan repayment when revenue declines. We develop a theoretical mode that explains the role of crop insurance in agricultural lending and how impacts may be different for lenders that are not specialized in agricultural lending. We then test whether the total volume of production credit extended by commercial banks at the county level increases in response to crop insurance availability and whether the level of the response is related to bank specialization in agriculture. We use a novel difference‐in‐differences strategy based on some counties having a higher share of agricultural production that was not covered by Federal crop insurance in the 1990s. Crop insurance has a robust relationship with increased loan volumes during this period, especially in counties with fewer banks specialized in agriculture. [ABSTRACT FROM AUTHOR]

The diffusion of credit cards may have relaxed households' liquidity constraints, thereby stimulating the diffusion of commercial insurance. By investigating Chinese urban households who had no commercial insurance in 2013, we find that their initial access to credit cards significantly increased the likelihood of their holding commercial insurance in 2015. Our instrumental variable (IV) estimations confirm the causality. This positive effect is more pronounced among more liquidity‐constrained households and among households with more financial knowledge. Last, the initial access to credit cards also significantly enhanced commercial insurance renewal in 2015 among those households who had commercial insurance in 2013. [ABSTRACT FROM AUTHOR]

The green credit policy serves as a crucial instrument for achieving the dual objectives of optimal resource allocation and green development. It plays a pivotal role in curbing inefficient investments in innovation by enterprises. This research employs the PSM-DID method to effectively explore the practical effects of the green credit policy on the innovation inefficiency investments of heavily polluting enterprises in China. Examining the impact from the perspectives of environmental regulation and financial constraints, the study utilizes panel data from listed companies on the Shanghai and Shenzhen A-shares markets spanning from 2010 to 2020. The following conclusions are drawn: (1) Green credit policy has proven effective in inhibiting the inefficient investment in innovation by heavily polluting enterprises when compared to non-heavily polluting enterprises. (2) Moreover, this effect is more pronounced in state-owned enterprises and regions with less financial development. (3) Mechanism testing reveals that the green credit policy can discourage corporate over-investment by influencing financing constraints and can alleviate under-investment through commercial credit. [ABSTRACT FROM AUTHOR]

We use the 2012 Green Credit Guidelines as a quasi-natural experiment and data from A-share listed companies from 2008–2020 to examine the effect of green credit policy on firm productivity and its mechanism of action. The results show that the green credit policy significantly inhibits improvements in firm productivity. The inhibitory effect still holds after a series of robustness tests, such as the difference-in-differences propensity score matching method, placebo test, and change in the timing of policy shocks. The mechanism of action test reveals that credit resource allocation, financing constraints and business credit are important channels through which green credit policy can reduce firm productivity. The heterogeneity test reveals that the inhibitory effect of green credit policy on firms' productivity improvements in restrictive industries is more significant for private firms, smaller firms, and inland regions. The policy implication of the findings of this paper is mainly to improve the green credit policy guarantee mechanism and policy implementation using the market as the main body, with the goal of realizing the synergistic development of policy implementation and environmental protection and of promoting rational resource allocation. [ABSTRACT FROM AUTHOR]

One of the important issues in Iran is to monitor imports and business processes as well as exchange rates. Given the government’s supportive policies for traders, how to implement these policies is challenging. An strategy to implement targeted oversight and policies is to control the actions of active traders based on their background. Data Envelopment Analysis (DEA) is one of the key tools to achieve this goal. The present research is based on Slack-Based Measure DEA Model (SBM-DEA) with an output-based approach which rates traders using real data as well as their background. In this model, 30 input indicators and six output indicators were first considered. Subsequently, given the correlation between them, the number was reduced to five input and four output indicators. After the extraction of effective input and output indicators, traders’ efficiency was measured and rated using DEA model. Then, wellrespected traders would receive facilities and various supports. To evaluate the performance of the model, the traders also were ranked using the Best Worst Method (BWM and after results shows better performance of the DEA model. Another result and application is the use of reference decision-making units, who indicate traders that are expected to have good performance by the market knowledge. Recognizing these units allows policy-makers to reduce other traders’ risk by disseminating their behavior. Another important application is traders’ classifications. By knowing the traders, the policy-maker reference can make a good classification of them, which is necessary for different resource allocation or facilitating policies. [ABSTRACT FROM AUTHOR]

This study aims to determine and analyze strategies in increasing People's Business Credit. Type of Research is a Type of Qualitative Research. This research was conducted at Bank Sulsebar Mamasa Branch. Research data sources from primary data and secondary data. Data collection methods through observation, interviews and documentation. This research uses qualitative descriptive analysis methods and SWOT analysis. The results of this study show that: The strategy in providing People's Business Credit in increasing customers is carried out by socializing to the public about the superior products of People's Business Credit, improving the process of providing People's Business Credit so that it is not slow in providing certainty in providing credit, selective in lending and providing assistance in business development for People's Business Credit debtors. The strategy in providing People's Business Credit in increasing customers is carried out by socializing to the public about superior products People's Business Credit, improving the process of providing People's Business Credit, so as not to be slow in providing certainty in providing credit, selective in lending and providing assistance in business development for debtors of People's Business Credit. [ABSTRACT FROM AUTHOR]

This study investigates the impact of FinTech development on the credit supply of China's commercial banks to individuals and enterprises. We first evaluate the development status and prospects of FinTech in China and construct theoretical influencing hypotheses. A 'supply-side' FinTech development index is constructed using principal component analysis. We employ panel data models and use financial data from 22 listed China's commercial banks between the year 2013 and 2020 to empirically test the hypothesized relationships. Multiple approaches are used to deal with endogenous problems. We also estimate the impact in a difference-in-difference model specification. The results show that FinTech development effectively facilitates the expansion of bank credit and the relationship continues to hold after remedying endogeneity issues. We further find that the impact is heterogeneous across banks in terms of bank type and bank size, with the impact on state-owned commercial banks being the least significant and the impact on small banks being the most significant. [ABSTRACT FROM AUTHOR]

The article explores the theoretical and methodological aspects of managing the loan portfolio and credit risks of a commercial bank in the context of the need to stimulate investment processes in the economy. The article considers the essential characteristics of the loan portfolio of a commercial bank and allocates its key features with clarification of their economic content in terms of the qualitative aspect of formation and management of the pool of credit assets. The study examines current approaches to assessing the credit portfolio of a commercial bank, taking into account its key characteristics. Indeed, based on the results of monitoring the quality of the credit portfolio, it is possible to formulate a set of proposals for managing credit assets and assess the adequacy of measures implemented by the bank's management in the face of economic uncertainty to maintain competitive positions on the credit services market. A review of the dynamics of lending to non-financial corporations and households by maturity is carried out through the prism of the potential use of these borrowed financial resources to intensify the investment activity of economic entities. [ABSTRACT FROM AUTHOR]

Banking sector credits have an important role in the functioning of the monetary transmission mechanism. Policies implemented to determine the money supply affect the credit channel and the real economy through monetary transmission. The sound functioning of the credit channel is closely related to the stable management and the level of development of the financial system. In this study, the relationship between commercial loans provided by the Turkish banking sector and employment is analyzed. The study utilizes monthly unemployment rates and commercial loans provided by the Turkish banking sector for the period 2015:M01-2023:M3. The stationarity levels of the variables are investigated with Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests. Granger Causality test and Toda Yamamoto method are used to determine whether there is causality between the variables and if there is a causality relationship, its direction. According to the results of causality analysis, it is concluded that there is no causality relationship between employment data and Turkish banking sector commercial loans. [ABSTRACT FROM AUTHOR]

This article presents our research effort to explore the convergence of sustainable banking practices and predictive modeling for bank loan defaults, with a primary emphasis on addressing the pressing need for resilient financial systems. To this end, an applied methodology is presented in this study to model bank loan defaults, emphasizing the incorporation of sustainability criteria into predictive analytics. Given the temporal nature of load data, our approach leverages Long Short-Term Memory (LSTM) networks as its backbone process for predictive modeling. The empirical results of the public case study underscored the enhanced predictive accuracy completed through this approach, emphasizing the pivotal function of integrating sustainability metrics in predicting mortgage defaults inside the banking area. [ABSTRACT FROM AUTHOR]

This paper examines the effect of shadow banking activities on the performance and risk-taking of 339 Vietnamese nonfinancial firms listed on the Ho Chi Minh Stock Exchange (HOSE). Using manually gathered data on firms' shadow banking activities from 2009 to 2021, the expansion of shadow banking is found to have a negative effect on the overall financial soundness of the securities companies, in particular negatively affecting performance and increasing the risk tolerance of companies. We present empirical findings about several aspects of shadow banking activities, including entrusted loans, entrusted investments, private lending, leasing, and commercial credit in this study. While the majority of shadow banking operations could have a negative impact on a firm's performance, we have discovered that commercial credit grants were crucial in reducing the COVID-19 pandemic's adverse effects on businesses, highlighting the need for financial stability in times of crisis. According to our results, the risk of shadow banking activities, which have consequences for policymakers and caution for nonfinancial enterprises, must be taken into consideration. [ABSTRACT FROM AUTHOR]

The unorganised event management sector comprises a significant portion of the overall event industry in India. These are small businesses that provide event planning and management services. These firms operate without proper structure or organisation, making it difficult for them to compete with larger organised firms. However, unorganised event management firms have strengths that allow them to provide services to clients that organised firms may not be able to provide. Though, due to the lack of proper infrastructure, stiff competition and financial support, many event organisers operating in the unorganised sector face various challenges. The banks can play a vital role in supporting these event organisers by providing them with financial assistance and other services. This study investigates the effect of bank credit on the business performance of unorganised event management firms. The study covers 230 unorganised event organisers from the Salem district. The qualitative data were collected by using a well-crafted questionnaire. The study result proved that bank credit has significantly influenced the business performance of event management firms. Event organisers are satisfied with their business performance. Moreover, bank credit has substantially influenced business performance in developing a capacity to conduct multiple events simultaneously, business growth, return on investment, profitability, competitive advantage, purchase of new equipment and adoption of recent technology. The study recommended that banks should frame adequate policies to support small business firms to access bank credit without any hindrance. Hence, to face challenges, event management firms should invest in proper organisational structure, recruit experienced professionals, and implement efficient planning and execution processes. This will help them to deliver successful events and build a positive reputation in the industry. [ABSTRACT FROM AUTHOR]

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Introducing sustainable credit protection by companies depends on eco-friendly funding that accelerate businesses' technical development and transformation. This study investigates the sustainable financing roles through green credit legislation which impacted state owned enterprises and non state owned enterprises. We have investigated our hypothesis using the Propensity Score Matching Difference-in-Differences (PSM-DID) model. For this purpose we collected data of businesses listed on the Shanghai and Shenzhen stock exchanges that are country's most polluting publicly listed enterprises between 2009 and 2021. The results of the study reveals that liquid Finance and industrial Credit experienced a meteoric rise while the use of illiquid debt financing has dropped significantly among highly polluting organizations. This pattern has intensified after China introduced its “sustainable credit guidelines.” Additionally, businesses in areas with lower sustainable development indices are more likely to feel the consequences of sustainable credit programs. However, there is still a need for prudent capital flow allocation in response to the personalized financing preferences resulting from the sustainable credit policy at the business level, even if China's sustainable credit rules have unquestionably reduced the use of illiquid debt financing by severely polluting enterprises. Policy implications include improving the direction signalled to these businesses via sustainable funding.

Purpose: The purpose of this article is to review the literature on cultural aspects of trade credit use. Specifically, it examines the issue of trade credit use in the context of trust, religion, and national culture. Design/methodology/approach: A literature review was conducted to identify the key cultural issues addressed in previous studies on trade credit and to summarize the research on the use of trade credit in three focus areas: trust, religion, and national culture. Findings: A literature review confirms that cultural factors, such as trust, religion, and national culture, play crucial roles in the provision and receipt of trade credit. Therefore, future research on trade credit should adopt a more comprehensive approach that extends beyond a purely financial perspective. Practical implications: Given the significance of trade credit in business operations, a thorough understanding of its cultural underpinnings can prove vital for the parties involved in a trade credit agreement. Originality/value: Despite the crucial importance of trade credit for companies and the extensive research devoted to it, the cultural dimension of its use remains an underexplored field. This article addresses this issue by providing an overview of the current state of research on trade credit concerning three cultural aspects: trust, religion, and national culture. Furthermore, the article outlines several potential directions for future research in the subject of the study. The article's subject matter falls within the expanding domain of culture and finance. [ABSTRACT FROM AUTHOR]

Credit rating is a matter of significance for institutions, professionals, and researchers in diverse sectors. Recently, it has garnered increased attention within the scientific community, particularly regarding various banking aspects. Our research employs bibliometric data to explore trends in credit rating. We examined 107 articles from Scopus-indexed journals in Business and Economics up to 2022, focusing on "credit rating" and "Europe" in titles, abstracts, and keywords. Our findings unveil influential journals, authors, countries, and emerging terms. This provides insights into the current state and essential terminology in credit rating research. Furthermore, we suggest potential complementary studies to enrich this research and propose future research directions. [ABSTRACT FROM AUTHOR]

This article provides aggregate data on credit flows in Santafé de Bogotá, the capital of the Viceroyalty of New Granada (present-day Colombia, Ecuador and western Venezuela). By perusing a thorough report submitted to Bourbon authorities on notarial transactions, which included both ecclesiastical and non-ecclesiastical loans in the city, the article estimates the volume and size of lending activity while exploring how distinct types of credit interacted and shaped the business milieu of the region. It argues that by the late 1770s, Catholic Church lending had ceased to be the main source of investable funds in the region, with merchants and other non-ecclesiastical investors injecting growing funds into sectors traditionally avoided by ecclesiastical lenders such as commerce, mining and manufacturing. Network analysis suggests that merchants became brokers between different credit sources, alleviating information asymmetries and opening the credit market to borrowers with collateral and institutional restrictions willing to pay higher interest rates. Finally, by focusing on New Granada, the largest gold producer of the Spanish Empire, the article identifies some distinctive credit patterns that are different from those developed in silver-driven economies such as New Spain and Peru. Thus, the article provides new paths to study Latin American financial history. [ABSTRACT FROM AUTHOR]

Considering the current and potential opportunities offered by blockchain technology in many areas, it can be understood that how current and future international trade will be affected by blockchain technology will be among the topics of interest. In this context, it is essential to understand the effect of blockchain technology on international trade for institutions that regulate international trade, businesses, academics and others. This study aims to examine the effect of blockchain technology on international trade in a scope (Web of Science, Scopus, Science and Direct databases) that has not been previously examined in the international literature. As a result of this research, it has been understood that the studies in the literature have many effects of blockchain technology, such as cost reduction in international trade, delivery times, performance, facilitation, data security, information sharing and documentation, reliability of the international commercial credit evaluation system, practices, policies and strategies. In addition, in some studies, it has been determined that there are suggestions on how blockchain technology can be used in international trade, such as a blockchain-based letter of credit trading process and a blockchain-based logistics platform. This study is expected to provide useful information to explain the impact of blockchain on international trade. [ABSTRACT FROM AUTHOR]

The carbon emission reduction behaviour of enterprises is a crucial element for achieving the "double-carbon" target. Based on the panel data of China's Shanghai and Shenzhen A-share nonfinancial listed companies from 2008 to 2022, this paper explores the impact of corporate carbon emission reduction on financing constraints using the fixed effect model and further dissects the path and heterogeneity of its impact. The results show that carbon emission reduction can significantly alleviate the level of financing constraints. The path test shows that corporate carbon emission reduction alleviates financing constraints through gaining business credit, improving information transparency, and increasing government subsidies. The heterogeneity analysis shows that carbon emission reduction in less economically developed regions, non-heavily polluting industries, and nonstate-owned enterprises has a better effect on alleviating financing constraints than in economically developed regions, heavily polluting industries and state-owned enterprises. Additionally, relevant policy recommendations are put forward, which are conducive to promoting enterprises to actively reduce carbon emissions and facilitate the achievement of the dual carbon goal. [ABSTRACT FROM AUTHOR]

Access to credit for businesses is an unresolved issue, especially in developing countries and transition economies. There has been a lot of research exploring factors affecting firms' credit accessibility. Particularly, factors related to borrowers and lenders are always placed under consideration. However, besides those factors, institutional elements could also play an important role in guiding companies' operations. In countries where the economy lacks transparency and low-level development is limited, informal institutional factors can have potential impacts. In this paper, we focus on exploring the relationship between firm–government links and credit access, thereby offering managerial implications through utilizing cross-sectional data sets at the firm level, with an initial sample of 26,849 observations from 38 countries at different levels of development around the world. The results show a positive correlation of firm–government connection with credit access. Moreover, this relationship may vary depending on the market in which the business primarily operates. Specifically, firms working internationally are less influenced by links with governments and tend to rely more on their own characteristics and conditions. [ABSTRACT FROM AUTHOR]

Determinants and levels of working capital financing (WCF) in the manufacturing sector have been empirically proven to impact firm profitability across emerging as well as developed nations. With time, firms adjust toward financing their working capital requirement (WCR), although the speed of adjustment, financing constraints, and bargaining power are subject to variations. In this study, we estimate the effect of bank credit and firm foreign currency borrowing on working capital financing with three distinct models for manufacturing firms in India. We examine the relationship between short-term foreign currency borrowings and WCF. Further, we investigate if the internal capital market affects WCF in the form of business group affiliation; lastly, we assess the impact of bank dependency and financial distress on WCF. We conclude that the debt–equity ratio becomes relevant, whereas firm characteristics such as age, size, and asset tangibility become irrelevant. Our original contribution to the literature is the finding that even smaller emerging market firms with well-managed, low debt exposure have improved access to WCF. Our results support that financial distress negatively impacts WCF but deviates from macroeconomic fundamentals, such as the GDP growth rate. This indicates deterioration in the health of Indian manufacturing, as a capital-intensive sector. Bank dependency remains significant, wherein smaller firms and those without a dividend pay-out continue to have longer cash conversion cycles and less efficient WCR. As a unique finding, we note foreign currency borrowings significantly contribute to WCF in the case of less developed credit markets in emerging economies such as India. [ABSTRACT FROM AUTHOR]

Using intertemporal variation in the bounding of a state's minimum wage by the federal rate and business credit-score data for 15.2 million establishments, we find that the increase in labor costs caused by a higher federal minimum wage leads to lower business credit scores and worsens the financial health of small businesses in the affected states. In particular, small, young, labor-intensive, and minimum-wage-sensitive establishments located in affected states and those located in competitive and low-income areas experience higher financial stress. Increases in the minimum wage are associated with employment reductions and a higher exit rate for small businesses. Our results document some potential costs of a one-size-fits-all nationwide minimum wage for some small businesses. This paper was accepted by Gustavo Manso, finance. Funding: This work was supported by the Ewing Marion Kauffman Foundation Junior Faculty Fellowship. Supplemental Material: The data and internet appendix are available at https://doi.org/10.1287/mnsc.2022.4620. [ABSTRACT FROM AUTHOR]

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