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This paper provides new evidence on the unique role of trade credit and contracting terms as a way for both sellers and buyers to mange business risk. The authors use a novel and unique dataset on almost 30,000 supplier contracts for 56 large buyers and more than 24,000 suppliers in Europe and North America. The sample of buyers and suppliers includes firms of varying size, investment grade, and sectors. The paper finds evidence in support of four important, and not mutually exclusive, reasons for trade credit: 1) as a method of financing; 2) as a means of price discrimination; 3) as a bond assuring buyers of product quality; and 4) as a screening mechanism to gauge buyer default risk. In particular, the analysis finds that the largest and most creditworthy buyers receive contracts with the longest maturities, as measured by net days, from smaller, investment grade suppliers. In comparison, early payment discounts seem to be used as a risk management tool to limit the potential nonpayment risk of trade credit. Early payment discounts are generally offered to smaller, non-investment grade buyers. The results suggest that contract terms are jointly determined by supplier and buyer characteristics.

Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill

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Friends-they are generous and cooperative with each other in ways that appear to defy standard evolutionary expectations, frequently sacrificing for one another without concern for past behaviors or future consequences. In this fascinating multidisciplinary study, Daniel J. Hruschka synthesizes an array of cross-cultural, experimental, and ethnographic data to understand the broad meaning of friendship, how it develops, how it interfaces with kinship and romantic relationships, and how it differs from place to place. Hruschka argues that friendship is a special form of reciprocal altruism based not on tit-for-tat accounting or forward-looking rationality, but rather on mutual goodwill that is built up along the way in human relationships.

Friendship --- Kinship. --- Human behavior. --- Interpersonal relations. --- Social aspects. --- affect theory. --- africa. --- altruism. --- animal friendships. --- anthropology. --- biocultural anthropology. --- china. --- companionship. --- cooperation. --- cultural anthropology. --- emotions. --- ethnography. --- evolution. --- evolutionary biology. --- family relationships. --- fear. --- friendship. --- generosity. --- germany. --- goodwill. --- human behavior. --- iceland. --- imaginary friends. --- kinship. --- maasai. --- nonfiction. --- platonic relationships. --- psychology. --- reciprocal altruism. --- reciprocity. --- relationships. --- reputation. --- romantic relationships. --- russia. --- science. --- shame. --- social networks. --- society. --- trust.

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The Banks and trust Companies Act, Financial Services Commission Act, and the Regulatory Act are considered for banking supervision. The assessment is also based on a self-assessment prepared by the Financial Services Commission (FSC). British Virgin Islands (BVI) law provides three classes of banking licenses. The preconditions for effective banking supervision are present in the BVI. The FSC has sufficient autonomy, powers, and resources with clear responsibilities and objectives. The FSC does not impose specific limits on investments but reviews bank-imposed limits. The FSC has a well-developed system of ongoing supervision in place.

Banks and Banking --- Finance: General --- Industries: Financial Services --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- General Financial Markets: Government Policy and Regulation --- Banking --- Financial services law & regulation --- Finance --- Market risk --- Bank supervision --- Basel Core Principles --- Financial services --- Financial regulation and supervision --- Bank licensing --- Banks and banking --- State supervision --- Financial risk management --- Financial services industry --- British Virgin Islands

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The key findings of Australia’s BASEL II implementation assessment are presented. The Australian Prudential Regulation Authority (APRA) allocated sufficient resources, including highly skilled staff, prior to the Basel II start date, and the outcome has been a robust and high-quality implementation that has built upon and substantially strengthened the risk-management capabilities of major banks. The quality of leadership and commitment by all involved has been instrumental in the success of this major implementation effort. APRA’s analysis of the adequacy of capital for systemically relevant banks is sound.

Economic policy -- Austria. --- International finance. --- International Monetary Fund. --- Banks and Banking --- Finance: General --- General Financial Markets: Government Policy and Regulation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- Financial Institutions and Services: Government Policy and Regulation --- Financial services law & regulation --- Banking --- Basel II --- Credit risk --- Capital adequacy requirements --- Market risk --- Financial regulation and supervision --- Operational risk --- Banks and banking --- State supervision --- Financial risk management --- Asset requirements --- Australia

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Top down spillovers of sovereign default risk can have serious consequences for the private sector in emerging markets. This paper analyzes the effects of these spillovers using firm-level data from 31 emerging market economies. We assess how sovereign risk affects corporate access to international capital markets, in the form of external credit (loans and bond issuances) and equity issuances. The study first analyzes the impact of sovereign debt crises during the 1980s and 1990s. It goes on to examine the 1993 to 2007 period, using additional measures of sovereign risk-sovereign bond spreads and sovereign ratings-as explanatory variables. Overall, we find that sovereign default risk is a crucial determinant of private sector access to capital, be it external debt or equity. We also find that crisis resolution patterns matter and that defaults towards private creditors have stronger adverse consequences than defaults to official creditors.

Exports and Imports --- Finance: General --- Financial Risk Management --- Investments: Stocks --- International Lending and Debt Problems --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- Debt --- Debt Management --- Sovereign Debt --- General Financial Markets: General (includes Measurement and Data) --- Financial Crises --- International Investment --- Long-term Capital Movements --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Finance --- Economic & financial crises & disasters --- International economics --- Investment & securities --- Financial crises --- Emerging and frontier financial markets --- Capital flows --- Capital markets --- Stocks --- Financial markets --- Balance of payments --- Financial institutions --- Financial services industry --- Capital movements --- Capital market --- United States