Does Money Buy Credit? Firm-Level Evidence on Bribery and Bank Debt
Zuzana Fungáčová (),
Anna Kochanova () and
Laurent Weill ()
World Development, 2015, vol. 68, issue C, 308-322
We combine information on bribery practices with firm-level accounting data to examine how bribery influences bank debt ratios for a large sample of firms in 14 transition countries. We find that bribery is positively related to firms’ total bank debt ratios, which provides evidence that bribing bank officials facilitates firms’ access to bank loans. This impact varies with the maturity of the bank debt, as bribery contributes to higher short-term bank debt ratios but lower long-term bank debt ratios. Finally, we find that the institutional characteristics of the banking industry influence the relation between bribery and firms’ bank debt ratios.
Keywords: bank lending; bribery; corruption; Eastern Europe (search for similar items in EconPapers)
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Working Paper: Does money buy credit?: Firm-level evidence on bribery and bank debt (2014)
Working Paper: Does Money Buy Credit? Firm-Level Evidence on Bribery and Bank Debt (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:68:y:2015:i:c:p:308-322
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