CEU Electronic Theses and Dissertations, 2011
| Author | Bashlycheva, Tatyana |
|---|---|
| Title | DOES CORRUPTION "GREASE OR SAND THE WHEELS": THE EFFECT OF CORRUPTION ON LOAN CONTRACTUAL TERMS |
| Summary | The aim of this paper is to study the consequences of corruption on loan contractual terms offered to borrowing firms. Based on the Business Environment and Enterprise Performance Survey (BEEPS) that covers firms in countries with economies in transition and several countries of Western Europe, my analysis suggests that corruption adversely affects loan contractual terms increasing interest rates and shortening loan maturities. Moreover, high level of corruption increases the likelihood that borrowers will be asked to pledge collateral against the loan. These results are statistically significant and robust to using alternative corruption measures, both the Corruption Perceptions Index developed by the Transparency International and sector-size averages of firms’ perceptions of corruption. |
| Supervisor | Telegdy, Almos |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2011/bashlycheva_tatyana.pdf |
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