Fosu, Samuel and Agyei-Boapeah, Henry and Neytullah, Ciftci (2023) Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries. The Financial Review, 58 (4). pp. 783-810. DOI https://doi.org/10.1111/fire.12361
Fosu, Samuel and Agyei-Boapeah, Henry and Neytullah, Ciftci (2023) Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries. The Financial Review, 58 (4). pp. 783-810. DOI https://doi.org/10.1111/fire.12361
Fosu, Samuel and Agyei-Boapeah, Henry and Neytullah, Ciftci (2023) Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries. The Financial Review, 58 (4). pp. 783-810. DOI https://doi.org/10.1111/fire.12361
Abstract
We investigate the effect of credit information sharing on cost of debt, with particular focus on the introduction of credit bureaus in developing countries. Using a large dataset of firms from 28 developing countries over the period 2004-2019, we find that firms’ average cost of debt significantly declines following the introduction of credit bureaus. This finding is robust to an alternative measure of cost of debt, several firm- and country-level controls and to firm- and year-fixed effects. The reduction in cost of debt is more pronounced for less transparent firms and for firms domiciled in countries with weak institutional framework.
Item Type: | Article |
---|---|
Uncontrolled Keywords: | Cost of debt; Credit bureaus; Information sharing; Institutional quality; Transparency |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 01 Aug 2023 10:30 |
Last Modified: | 20 Oct 2023 21:04 |
URI: | http://repository.essex.ac.uk/id/eprint/35947 |
Available files
Filename: The Financial Review - 2023 - Fosu - Credit information sharing and cost of debt Evidence from the introduction of credit.pdf
Licence: Creative Commons: Attribution 4.0