Header

UZH-Logo

Maintenance Infos

Will money talk? Firm bribery and credit access


Qi, Shusen; Ongena, Steven (2019). Will money talk? Firm bribery and credit access. Financial Management, 48(1):117-157.

Abstract

We investigate if corruption impedes firm growth through limiting access to bank credit. Our estimates demonstrate that access to credit tightens when a firm is more frequently involved in bribery practices, and that bribery (most likely) causes this loss of access. We also find that the detrimental impact is mainly driven by supply-side rather than by demand-side factors, and that the loss of access is particularly strong when there are fewer foreign banks in the vicinity of the firm or if competition is either very low or very high in the local banking market. Finally, the bribery-driven increase in financing obstacle significantly impedes future firm growth.

Abstract

We investigate if corruption impedes firm growth through limiting access to bank credit. Our estimates demonstrate that access to credit tightens when a firm is more frequently involved in bribery practices, and that bribery (most likely) causes this loss of access. We also find that the detrimental impact is mainly driven by supply-side rather than by demand-side factors, and that the loss of access is particularly strong when there are fewer foreign banks in the vicinity of the firm or if competition is either very low or very high in the local banking market. Finally, the bribery-driven increase in financing obstacle significantly impedes future firm growth.

Statistics

Citations

Dimensions.ai Metrics
9 citations in Web of Science®
9 citations in Scopus®
Google Scholar™

Altmetrics

Downloads

1 download since deposited on 30 Oct 2019
0 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Accounting
Social Sciences & Humanities > Finance
Social Sciences & Humanities > Economics and Econometrics
Language:English
Date:3 March 2019
Deposited On:30 Oct 2019 10:05
Last Modified:29 Jul 2020 11:32
Publisher:Wiley-Blackwell Publishing, Inc.
ISSN:0046-3892
OA Status:Closed
Publisher DOI:https://doi.org/10.1111/fima.12218
Other Identification Number:merlin-id:16209

Download

Closed Access: Download allowed only for UZH members