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.


We focus on how banking liberalization modifies firms’ debt structure (availability and maturity) and on how bank supervision, investor protection, and firm size shape the influence of banking liberalization and give rise to differences between developed and developing countries.

Victor Gonzalez
Universidad de Oviedo

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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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