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Cross-border regulatory cooperation and debt choice

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  • Dak-Adzaklo, Adelaide
  • Kaiser, Daniel

Abstract

The objective of this study is to examine the role of regulatory oversight in firms’ choice of debt. Using the signing of the Multilateral Memorandum of Understanding (MMoU) as a quasi-natural experiment, we find that enhanced SEC oversight facilitates public debt contracting, especially for firms with severe agency problems. Our study has important implications for both research and practice.

Suggested Citation

  • Dak-Adzaklo, Adelaide & Kaiser, Daniel, 2024. "Cross-border regulatory cooperation and debt choice," Economics Letters, Elsevier, vol. 242(C).
    • Handle: RePEc:eee:ecolet:v:242:y:2024:i:c:s0165176524003422
    DOI: 10.1016/j.econlet.2024.111858
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    References listed on IDEAS

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    Keywords

    SEC oversight; MMoU; Debt choice;
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