Social trust and the choice between bank debt and public debt: Evidence from international data

IF 2.9 3区 经济学 Q2 BUSINESS, FINANCE
Sharif Mazumder , Ramesh Rao
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引用次数: 1

Abstract

Motivated by existing research on the informational and monitoring role of social trust, we examine how social trust affects firms’ choice between bank debt and public debt. Using firm-level data from 33 countries, we document that higher social trust is associated positively (negatively) with the long-term public (bank) debt ratio. The findings are robust when we control for other important country-level and firm-level factors. There are two possible channels of this association. We find that social trust affects debt structure through monitoring and borrowers’ incentive channels. To address potential endogeneity, we use instrumental variables, propensity score and entropy balancing matching, and large change analyses and document that our findings are robust. Examining the effect of debt structure on firm performance, we find that Tobin's Q associates positively with long-term public debt ratios in high-trust countries.

社会信任与银行债务与公共债务的选择——来自国际数据的证据
基于已有的关于社会信任的信息和监督作用的研究,我们研究了社会信任如何影响企业在银行债务和公共债务之间的选择。利用来自33个国家的企业层面数据,我们证明了较高的社会信任与长期公共(银行)负债率呈正(负)相关。当我们控制其他重要的国家层面和公司层面的因素时,研究结果是稳健的。这种联系有两种可能的途径。我们发现社会信任通过监督和借款人激励渠道影响债务结构。为了解决潜在的内生性问题,我们使用了工具变量、倾向得分和熵平衡匹配,以及大变化分析,并证明我们的发现是稳健的。在考察债务结构对企业绩效的影响时,我们发现托宾Q值与高信任度国家的长期公共债务比率呈正相关。
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来源期刊
CiteScore
7.30
自引率
4.80%
发文量
25
审稿时长
30 days
期刊介绍: International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.
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