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The consequence of societal secrecy for the financial constraints faced by firms

Olayinka Oyekola and Samuel Odewunmi

Economics Letters, 2023, vol. 228, issue C

Abstract: Does the level of societal secrecy aggravate or alleviate access to finance? We explore this question for 51,249 firms in 39, predominantly developing, countries, from 2006 to 2015. We find a strong positive relationship between cultural orientation towards secrecy in a country and financial constraints faced by its firms. Our results are robust to several considerations and emphasize the adverse consequence of societal secrecy for perpetuating financing obstacles for firms.

Keywords: Financial constraints; Access to credit; Societal secrecy; National culture; Firm-level data (search for similar items in EconPapers)
JEL-codes: G20 G30 O16 Z1 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.econlet.2023.111182

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