The impact of terrorism and institutional quality on cost of debt: an analysis on developing countries

IF 1.2 Q3 BUSINESS, FINANCE

International Journal of Managerial and Financial Accounting Pub Date : 2023-01-01 DOI:10.1504/ijmfa.2023.133780

Issa Dawd, Lanouar Charfeddine

引用次数: 0

Abstract

This study examines the impact of terrorism and institutional quality on the cost of debt. Considering all observed incidents in 35 countries over the period 1998-2019. Our main finding is that terrorist activity has a positive and significant effect on the cost of debt. We also find that improved institutional quality help to reduce the cost of debt. Our analysis also suggests that the response of the cost of debt to shocks on terrorism and quality institutions lasts between one and eight years. However, there is evidence of a bidirectional Granger causality between the cost of debt and the global terrorism index and between institutional quality and the cost of debt in the case of the global terrorism index. The policy implications of the empirical findings have been discussed.

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恐怖主义和机构质量对债务成本的影响:对发展中国家的分析

本研究考察了恐怖主义和制度质量对债务成本的影响。考虑到1998年至2019年期间在35个国家观察到的所有事件。我们的主要发现是，恐怖活动对债务成本有积极而显著的影响。我们还发现，制度质量的提高有助于降低债务成本。我们的分析还表明，债务成本对恐怖主义和优质机构冲击的反应将持续1至8年。然而，有证据表明，在债务成本与全球恐怖主义指数之间，以及在全球恐怖主义指数中，制度质量与债务成本之间存在双向格兰杰因果关系。本文还讨论了实证研究结果的政策含义。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Managerial and Financial Accounting BUSINESS, FINANCE-

CiteScore

2.10

自引率

7.10%

发文量

期刊介绍： IJMFA covers all aspects of managerial and financial accounting. The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organisation, while financial accounting is aimed at providing information to external parties. In today''s advanced manufacturing environment, various issues arise for accounting standard-setting practicing professionals. Solving the separate issues of managerial and financial accounting is a significant challenge, and IJMFA assists researchers in overcoming these challenges in an efficient, effective manner.