Journal Article
Beneficial \"firm runs\"
Abstract: The author argues that runs, which are generally considered undesirable, also have a beneficial effect--improving lenders' monitoring incentives. Lenders' ability to run on the firm helps control its moral hazard problem, while the first-come, first-served aspect of asset distribution keeps lenders from wanting to free ride on the monitoring efforts of others.
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File(s): File format is text/html http://www.clevelandfed.org/research/review/1998/98-q1-longhofer.pdf
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Review
Publication Date: 1998
Volume: 34
Issue: Q I
Pages: 21-29