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Banking liberalization and firms' debt structure: International evidence

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  • González, Víctor M.
  • González, Francisco

Abstract

This paper analyzes the effect of banking liberalization on debt structure in a sample of firms in 37 developed and developing countries. Banking liberalization increases on average debt availability and reduces its maturity. Debt availability increases in countries with stronger supervision and lower protection of creditor and property rights. The reduction in debt maturity is greater in developed countries. The effect of banking liberalization also varies across firm size. Small firms in developed countries and large firms in developing countries benefit least from banking liberalization.

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  • González, Víctor M. & González, Francisco, 2014. "Banking liberalization and firms' debt structure: International evidence," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 466-482.
    • Handle: RePEc:eee:reveco:v:29:y:2014:i:c:p:466-482
    DOI: 10.1016/j.iref.2013.07.008
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    Cited by:

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    2. Grilli, Ruggero & Tedeschi, Gabriele & Gallegati, Mauro, 2014. "Bank interlinkages and macroeconomic stability," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 72-88.
    3. Peisen Liu & Shoujun Huang & Houjian Li, 2018. "Bank Concentration and Firms' Debt Structure: Evidence from China," Annals of Economics and Finance, Society for AEF, vol. 19(1), pages 213-227, May.
    4. Dheera-aumpon, Siwapong, 2016. "Bank ownership and connected lending," International Review of Economics & Finance, Elsevier, vol. 41(C), pages 274-286.
    5. Orman, Cüneyt & Bülent, Köksal, 2015. "Structure of Debt Maturity across the Firm Type Spectrum," MPRA Paper 64860, University Library of Munich, Germany.

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    More about this item

    Keywords

    Debt structure; Banking liberalization; Supervision; Investor protection; Development;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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