What is it about?
We analyze if banking liberalization affects short and long-term debt differently, and how countries’ supervision, investor protection, and firm size motivate different effects between developed and developing countries. We use an international panel database of a maximum of 9,822 firms in 37 developing and developed countries over the 1995-2004 period. Banking liberalization increases firms’ debt availability and reduces its maturity
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Why is it important?
We analyze: 1) the effect of banking liberalization not only on debt availability but also on its maturity: 2) the interaction of banking liberalization with official and private bank supervision, and with investor protection in a country; 3) if banking liberalization affects small and large firms differently depending on countries’ development.
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This page is a summary of: Banking liberalization and firms' debt structure: International evidence, International Review of Economics & Finance, January 2014, Elsevier, DOI: 10.1016/j.iref.2013.07.008.
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