Corporate Governance Regulation, Legal Origin, and Access to Credit: A Cross-European Comparison
Sprache des Vortragstitels:
Academy of Management Annual Meeting 2019
Sprache des Tagungstitel:
In this cross-European study, we investigate the impact of two specific corporate governance mechanisms (shareholder rights and regulations on related-party transactions) on firms? decision to apply for credit and the banks? lending decision. We argue that this impact is unique for SME?s and contingent upon the legal origin that shapes the regulatory institutional setting in which the corporate governance mechanisms are embedded. Logit regression based on 45,596 firm-level observations from 13 European countries reveals no direct effect. Rather, the impact of corporate governance on SME?s credit access unfolds through regulatory institutional contexts that are shaped only by specific legal origins.