Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
An operational perspective on micro-financing in developing countries
Opher Baron, Elaheh Rashidinejad, Gonzalo Romero
Rotman School of Management, University of Toronto, Canada
We compare two microfinancing structures in developing countries where an entrepreneur with zero initial budget borrows a loan to start a business. The entrepreneur faces a Newsvendor problem with finance and effort considerations. We characterize conditions under which a community bank, which can apply social pressure on the entrepreneur to pay all of its debt back, improves individual and social welfare in comparison with a social bank, which has no such mechanism.
DeGroote School of Business, McMaster University, Canada
Loans can cause bankruptcy risk in capital constrained businesses. This study presents three data-driven contracts that enable us to capture the trade credit and bank credit risks by trade credit insurance and payment protection insurance, respectively. Analyses underscore the significance of using insurance services as risk hedging tools and ensuring the business continuity of supply chain players. Moreover, retailer prefers to receive trade credit if supplier purchase insurance services.
Empirical evidence about payment term extensions in the reverse factoring context
David Wuttke
TUM School of Management, HN Campus, Germany
Reverse factoring is increasingly relevant in the industry and examined in academia. We complement the extant analytical studies on reverse factoring with empirical evidence and determine whether theoretical predictions of those models are consistent with industry practice. Some of our corresponding hypotheses are indeed supported, whereas in other cases, we find the opposite direction significant. Based on our analysis, we derive several implications for managers and researchers.