Advanced Search
MyIDEAS: Login

Risk perception and the financial system

Contents:

Author Info

  • Lynnette D Purda

    (Queen's School of Business, Queen's University, Kingston, Ontario, Canada)

Registered author(s):

    Abstract

    I examine how a country's financial system influences assessments of firm-level risk. Consistent with theories of financial intermediation, I find that firms located in a country with a bank-oriented financial system are perceived as posing a lower credit risk and correspondingly are assigned higher credit ratings than otherwise similar firms in a market-oriented setting. Even after considering elements of a country's legal infrastructure that relate to creditor protection and insolvency proceedings, the financial system remains an important determinant of credit-rating assignment. The results are robust to the inclusion of several firm-level controls, including financial performance, industry, ownership concentration, political connections, and the ease with which the firm's assets can be monitored. Journal of International Business Studies (2008) 39, 1178–1196. doi:10.1057/palgrave.jibs.8400411

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.palgrave-journals.com/jibs/journal/v39/n7/pdf/8400411a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/jibs/journal/v39/n7/full/8400411a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 39 (2008)
    Issue (Month): 7 (October)
    Pages: 1178-1196

    as in new window
    Handle: RePEc:pal:jintbs:v:39:y:2008:i:7:p:1178-1196

    Contact details of provider:
    Web page: http://www.palgrave-journals.com/

    Order Information:
    Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
    Email:
    Web: http://www.palgrave-journals.com/pal/subscribe/index.html

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Reuter, Ute & Burr, Wolfgang, 2011. "International market assessment: Site selection in service firms," Research Papers on Innovation, Services and Technology 2/2011, University of Stuttgart, Institute of Business Administration, Department I - Institute of Research & Development and Innovation Management.
    2. Kayo, Eduardo K. & Kimura, Herbert, 2011. "Hierarchical determinants of capital structure," Journal of Banking & Finance, Elsevier, vol. 35(2), pages 358-371, February.
    3. Kanagaretnam, Kiridaran & Lim, Chee Yeow & Lobo, Gerald J., 2010. "Auditor reputation and earnings management: International evidence from the banking industry," Journal of Banking & Finance, Elsevier, vol. 34(10), pages 2318-2327, October.
    4. Aggarwal, Raj & Goodell, John W., 2014. "Cross-national differences in access to finance: Influence of culture and institutional environments," Research in International Business and Finance, Elsevier, vol. 31(C), pages 193-211.
    5. Kanagaretnam, Kiridaran & Lim, Chee Yeow & Lobo, Gerald J., 2014. "Effects of international institutional factors on earnings quality of banks," Journal of Banking & Finance, Elsevier, vol. 39(C), pages 87-106.
    6. Aggarwal, Raj & Goodell, John W., 2011. "International variations in expected equity premia: Role of financial architecture and governance," Journal of Banking & Finance, Elsevier, vol. 35(11), pages 3090-3100, November.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:39:y:2008:i:7:p:1178-1196. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.