Connected Lending: Thailand before the Financial Crisis
Abstract
We used a detailed data set on Thai firms before the Asian crisis of 1997 to examine whether business connections predicted preferential access to long-term bank credit. We found that firms with connections to banks and politicians had greater access to long-term debt than firms without such ties. Connected firms needed less collateral, obtained more long-term loans, and appeared to use fewer short-term loans than those without connections. We found no connections between banks and firms reducing asymmetric information problems. This is consistent with research implicating weak corporate governance in the extent and severity of the crisis.Download Info
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Bibliographic Info
Article provided by University of Chicago Press in its journal Journal of Business.
Volume (Year): 79 (2006)
Issue (Month): 1 (January)
Pages: 181-218
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JB/
Related research
Keywords:Other versions of this item:
- Charumilind, Chutatong & Kali, Raja & Wiwattanakantang, Yupana, 2003. "Connected Lending: Thailand before the Financial Crisis," CEI Working Paper Series 2003-19, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
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