Are bond markets and bank credits complementary or substitutable? Evidence based on the rule of law and countries’ legal origins

IF 2.9 3区 经济学 Q1 ECONOMICS
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Abstract

Bond and bank financing coexist despite their similarities as debt financing. I hypothesize that strengthening the rule of law in each country impacts corporate monitoring and firms’ financing preferences. I use panel data from 50 countries to analyze how the strength of the rule of law differs depending on countries’ legal origins. By using a regression model with an interaction term, I estimate marginal effects to determine if a stricter rule of law promotes bank or bond financing. The findings show that countries with common-law legal origins tend to have a stronger rule of law than civil law countries. A stronger rule of law increases bank lending but has a negative impact on bond issuance. This effect has a more significant impact in countries with Scandinavian legal origins and only a minor effect in countries with French legal origins. These differences can be attributed to how each country addresses agency problems, concerns regarding bank influence, and the availability of additional banking services.

债券市场和银行信贷是互补还是可替代?基于法治和国家法律渊源的证据
债券融资和银行融资并存,尽管它们都是债务融资。我的假设是,加强各国的法治会影响企业监督和企业的融资偏好。我利用 50 个国家的面板数据,分析了法治的强度如何因国家的法律渊源而有所不同。通过使用带有交互项的回归模型,我估算了边际效应,以确定更严格的法治是否会促进银行或债券融资。研究结果表明,英美法系国家的法治往往强于大陆法系国家。更严格的法治会增加银行贷款,但对债券发行有负面影响。这种影响在具有斯堪的纳维亚法律渊源的国家更为显著,而在具有法国法律渊源的国家仅有轻微影响。这些差异可归因于每个国家如何解决代理问题、对银行影响力的担忧以及额外银行服务的可用性。
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来源期刊
CiteScore
6.00
自引率
2.90%
发文量
118
期刊介绍: The Quarterly Review of Economics and Finance (QREF) attracts and publishes high quality manuscripts that cover topics in the areas of economics, financial economics and finance. The subject matter may be theoretical, empirical or policy related. Emphasis is placed on quality, originality, clear arguments, persuasive evidence, intelligent analysis and clear writing. At least one Special Issue is published per year. These issues have guest editors, are devoted to a single theme and the papers have well known authors. In addition we pride ourselves in being able to provide three to four article "Focus" sections in most of our issues.
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