We estimate empirically the impact of the insolvency and bankruptcy code (IBC) on corporate leverage in India. The analysis builds on the Prowess database. For the estimations we use the difference in differences approach, where listed firms are used as the control group. We find that the IBC...

We examine the effect of regional favoritism on firms’ access to credit. Using firm-level data on a large sample of 29,000 firms covering 48 countries, we investigate the hypothesis that access to credit of firms is higher in the birth regions of national political leaders. We find evidence...

We estimate empirically the debt limits and debt capacity of listed manufacturing firms in Nigeria over the period 2005-2019. The analysis contributes to our understanding of the financial constraints of the firms, and their scope to absorb shocks and finance growth using the debt market. The...

This paper investigates how the rules that corporations wrote for themselves related to their financing and performance in an environment characterized by poor investor protections, Imperial Russia. We present new data on detailed governance provisions from Imperial Russian corporate charters,...

Entrepreneurs appear to borrow largely against their near-term revenues, even when their investment has a longer horizon. In this paper, we develop a model of credit horizons. A question of particular concern to us is whether persistently low interest rates can stifle economic activity. With...

We investigate whether the occurrence of elections affect access to credit for firms. We perform an investigation using firm-level data covering 44 developed and developing countries. We find that elections have a detrimental influence on access to credit: firms are more credit-constrained in...

How important is a relationship with a bank to a firm’s performance and survival? If firms can easily switch among different sources of credit supply, then the loss of any one source may have little implication for the firms that have borrowed from that source. However, to the extent that...

The Digital Development Dialogue (3D) seminar is a monthly 45-minute online forum for policy and research exchange. Two speakers – one researcher and one practitioner – touch upon key topics in development policy with the goal of stimulating a meaningful dialogue across the theory & practice...