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Governance And Access To Finance

Author

Listed:
  • FLORENTINA MELNIC

    (Alexandru Ioan Cuza University of Iasi, Romania)

  • DANIEL JURAVLE

    (TAlexandru Ioan Cuza University of Iasi, Romania)

Abstract

This paper reviews the literature on institutional quality and corporate governance and it assesses the impact of the two levels of governance on firms’ access to finance. The literature sustains that both institutional quality and corporate governance are important drivers of bank lending activity and equity financing. Among the institutional quality indicators that proved to be most effective are creditor rights, transparency and contract enforcement. The corporate governance attributes that manifest important effects on firms’ financing are the board size, ownership and monitoring of managerial decisions that reduces agency costs. The legal institutional framework and firms’ corporate governance influences the level of a country’s financial development a complementary manner.

Suggested Citation

  • Florentina Melnic & Daniel Juravle, 2020. "Governance And Access To Finance," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 25, pages 151-168, June.
    • Handle: RePEc:aic:revebs:y:2020:j:25:melnicf
    DOI: 10.1515/rebs-2020-0108
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    References listed on IDEAS

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    More about this item

    Keywords

    access to finance; institutional quality; corporate governance; firm performance;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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