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Information Sharing and Credit: Firm-Level Evidence from Transition Countries

We investigate whether information sharing among banks has affected credit market performance in the transition countries of Eastern Europe and the former Soviet Union, using a large sample of firm-level data. Our estimates show that information sharing is associated with improved availability and lower cost of credit to firms, and that this correlation is stronger for opaque firms than transparent firms. In cross-sectional estimates, we control for variation in country-level aggregate variables that may affect credit, by examining the differential impact of information sharing across firm types. In panel estimates, we also control for the presence of unobserved heterogeneity at the firm level and for changes in selected macroeconomic variables.

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Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 178.

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Date of creation: 01 May 2007
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Publication status: published in the Journal of Financial Intermediation, Vol. 18, No. 2, April 2009, 151-172.
Handle: RePEc:sef:csefwp:178
Contact details of provider: Postal: I-80126 Napoli
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