Banking liberalization and firms' debt structure: International evidence

Víctor M. González and Francisco González

International Review of Economics & Finance, 2014, vol. 29, issue C, 466-482

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.

Keywords: Debt structure; Banking liberalization; Supervision; Investor protection; Development (search for similar items in EconPapers)
JEL-codes: G18 G32 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:29:y:2014:i:c:p:466-482

DOI: 10.1016/j.iref.2013.07.008

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