{"title":"Open government data and the cost of debt","authors":"Qiuhang Xing , Gaoshuang Xu , Yanping Wang","doi":"10.1016/j.irfa.2024.103384","DOIUrl":null,"url":null,"abstract":"<div><p><em>Open government data</em> refers to a government's policy of disclosing available data to society. Using China's policy of disclosing open government data, which has been progressively implemented, this paper investigates whether open government data affect the cost of debt for firms. We find that open government data can alleviate information asymmetry between creditors and firms, in turn significantly reducing the cost of debt for firms. This effect is pronounced in high-risk firms that creditors perceive to be engaging in opportunistic behavior, small firms, and regions with underdeveloped fintech or where the legal environment is not sufficiently protective of creditors. Furthermore, we find that the maturity of open government data contributes to its reducing effect on the cost of debt for firms. Finally, our results reveal that open government data facilitate firms' borrowing of both long-term loans and loans without third-party guarantees. Our study thus demonstrates the value of open government data for creditors.</p></div>","PeriodicalId":48226,"journal":{"name":"International Review of Financial Analysis","volume":null,"pages":null},"PeriodicalIF":7.5000,"publicationDate":"2024-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Review of Financial Analysis","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1057521924003168","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Open government data refers to a government's policy of disclosing available data to society. Using China's policy of disclosing open government data, which has been progressively implemented, this paper investigates whether open government data affect the cost of debt for firms. We find that open government data can alleviate information asymmetry between creditors and firms, in turn significantly reducing the cost of debt for firms. This effect is pronounced in high-risk firms that creditors perceive to be engaging in opportunistic behavior, small firms, and regions with underdeveloped fintech or where the legal environment is not sufficiently protective of creditors. Furthermore, we find that the maturity of open government data contributes to its reducing effect on the cost of debt for firms. Finally, our results reveal that open government data facilitate firms' borrowing of both long-term loans and loans without third-party guarantees. Our study thus demonstrates the value of open government data for creditors.
期刊介绍:
The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.