Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212215 
Year of Publication: 
2012
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 12/2012
Publisher: 
Bank of Finland, Helsinki
Abstract: 
We investigate how borrowers corporate governance influences bank loan contracting terms in emerging markets and how this relation varies across countries with different country-level governance. We find that borrowers with stronger corporate governance obtain favorable contracting terms with respect to loan amount, maturity, collateral requirements, and spread. Firm-level and country-level corporate governance are substitutes in writing and enforcing financial contracts. We also find that the distinctiveness of borrowers characteristics affect the relation between firm-level corporate governance and loan contracting terms. Our findings are robust, irrespective of types of regression methods and specifications.
JEL: 
G20
G30
G31
G34
G38
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-797-9
Document Type: 
Working Paper

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