search query: @author Padilla, J. / total: 6
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| Author: | Padilla, J. Pagano, M. |
| Title: | Endogenous communication among lenders and entrepreneurial incentives |
| Journal: | Review of Financial Studies
1997 : SPRING, VOL. 10;1, p. 205-236 |
| Index terms: | REVIEW FINANCE INCENTIVES |
| Language: | eng |
| Abstract: | If banks have an informational monopoly about their clients, borrowers may curtail their effort level for fear of being exploited via high interest rates in the future. Banks can correct this incentive problem by committing to share private information with other lenders. The fiercer competition triggered by information sharing lowers future interest rates and future profits of banks. But, provided banks retain an initial informational advantage, their current profits are raised by the borrowers' higher effort. |
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