We use data from 37 countries around the world to examine how property rights
affect bank
loan rates. Our results show that banks charge higher loan rates when property
rights are weaker.
These effects are economically large. If a country improved property rights
protection from the 25th percentile to the 75th percentile, loan spreads will
decline by 87 basis points. Governance mechanisms at the firm level affect loan
spreads too, but these effects are second order. An implication of these findings
is that larger improvement in cost of external financing will take place from
policies improving the property rights protection at the country leve l, rather
than from policies that aim at improving governance mechanisms at the firm level.
학술대회/행사
학술대회안내
[2003년 제 2차] Property Rights Protection and Loan Rates
작성자 : 관리자
조회수 : 841
게시일 :
2003-07-12