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Banking liberalization and firms' debt structure: International evidence

  • González, Víctor M.
  • González, Francisco
Registered author(s):

    This paper analyzes the effect of banking liberalization on debt structure in a sample of firms in 37 developed and developing countries. Banking liberalization increases on average debt availability and reduces its maturity. Debt availability increases in countries with stronger supervision and lower protection of creditor and property rights. The reduction in debt maturity is greater in developed countries. The effect of banking liberalization also varies across firm size. Small firms in developed countries and large firms in developing countries benefit least from banking liberalization.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1059056013000713
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    Article provided by Elsevier in its journal International Review of Economics & Finance.

    Volume (Year): 29 (2014)
    Issue (Month): C ()
    Pages: 466-482

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    Handle: RePEc:eee:reveco:v:29:y:2014:i:c:p:466-482
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620165

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