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The consequence of societal secrecy for financial constraints

Author

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  • Olayinka Oyekola

    (Department of Economics, University of Exeter)

  • Samuel Odewunmi

    (Department of Economics, University of Exeter)

Abstract

Does the level of societal secrecy aggravate or alleviate access to finance? We explore this question for over 50,000 firms in around 40, predominantly developing, countries, from 2006 to 2015. We find a strong positive relationship between cultural orientation towards secrecy in a country and financial constraints faced by its firms. Our results are robust to several considerations and emphasise the adverse consequence of societal secrecy for perpetuating financing obstacles for firms.

Suggested Citation

  • Olayinka Oyekola & Samuel Odewunmi, 2023. "The consequence of societal secrecy for financial constraints," Discussion Papers 2303, University of Exeter, Department of Economics.
    • Handle: RePEc:exe:wpaper:2303
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    References listed on IDEAS

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    Cited by:

    1. Olayinka Oyekola & Martha A. Omolo & Olapeju C. Ogunmokun, 2023. "Are majority-female-owned firms more susceptible to bribery solicitations?," Discussion Papers 2311, University of Exeter, Department of Economics.

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    More about this item

    Keywords

    financial constraints; access to credit; societal secrecy; national culture; firm-level data;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Z1 - Other Special Topics - - Cultural Economics

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