State Ownership and Corporate Leverage Around the World

Ralph De Haas, Sergei Guriev and Alexander Stepanov ()

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Abstract: Does state ownership hinder or help rms access credit? We use data on almost 4 million rms in 89 countries to study the relationship between state ownership and corporate leverage. Controlling for country-sector-year xed eects and conventional rm-level determinants of leverage, we show that state ownership is robustly and negatively related to corporate leverage. This relationship holds across most of the rm-size distributionwith the important exception of the largest companiesand is stronger in countries with weak political and legal institutions. A panel data analysis of privatized rms and a comparison of privatized with matched control rms yield similar qualitative and quantitative eects of state ownership on leverage.

Keywords: State ownership privatization corporate debt state banks; State ownership; privatization; corporate debt; state banks (search for similar items in EconPapers)
Date: 2022-05-10
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03878686
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Working Paper: State Ownership and Corporate Leverage Around the World (2022)
Working Paper: State Ownership and Corporate Leverage Around the World (2022)
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