Do National Differences in Social Capital and Corporate Ethical Behaviour Perceptions Influence the Use of Collateral? Cross-Country Evidence

Giota Papadimitri (), Fotios Pasiouras and Menelaos Tasiou ()
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Menelaos Tasiou: University of Portsmouth

Journal of Business Ethics, 2021, vol. 172, issue 4, No 9, 765-784

Abstract: Abstract We study the impact of social capital and perceptions about corporate ethical behaviour on the use of collateral in corporate borrowing. Using a dataset of more than 17,500 firms operating in over 100 transition and developing countries, we find evidence that country-level social capital and better perceptions about corporate ethical behaviour are negatively associated with the likelihood to pledge collateral. In addition, these country-level characteristics influence the value of collateral relative to the loan value.

Keywords: Social capital; Ethics; Collateral (search for similar items in EconPapers)
JEL-codes: G21 G32 G41 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s10551-019-04412-4

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