Risk perception and the financial system

• 成果类型: Article
• 署名作者: Purda, Lynnette D.
• 署名单位: Queens University - Canada
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/palgrave.jibs.8400411
• 发表日期: 2008
• 页码: 1178-1196
• 关键词: credit ratings; financial markets; INSTITUTIONAL ENVIRONMENT

摘要

I examine how a country's financial system influences assessments of firm-level risk. Consistent with theories of financial intermediation, I find that firms located in a country with a bank-oriented financial system are perceived as posing a lower credit risk and correspondingly are assigned higher credit ratings than otherwise similar firms in a market-oriented setting. Even after considering elements of a country's legal infrastructure that relate to creditor protection and insolvency proceedings, the financial system remains an important determinant of credit-rating assignment. The results are robust to the inclusion of several firm-level controls, including financial performance, industry, ownership concentration, political connections, and the ease with which the firm's assets can be monitored.