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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Will money talk? Firm bribery and credit access
Organization Unit
Authors
  • Shusen Qi
  • Steven Ongena
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Financial Management
Publisher Wiley-Blackwell Publishing, Inc.
Geographical Reach international
ISSN 0046-3892
Volume 48
Number 1
Page Range 117 - 157
Date 2019
Abstract Text 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.
Digital Object Identifier 10.1111/fima.12218
Other Identification Number merlin-id:16209
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