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Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries. / Fosu, Samuel; Agyei-Boapeah, Henry; Ciftci, Neytullah.
In: The Financial Review, Vol. 58, No. 4, 25.07.2023, p. 783-810.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Fosu, S, Agyei-Boapeah, H & Ciftci, N 2023, 'Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries', The Financial Review, vol. 58, no. 4, pp. 783-810. https://doi.org/10.1111/fire.12361

APA

Fosu, S., Agyei-Boapeah, H., & Ciftci, N. (2023). Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries. The Financial Review, 58(4), 783-810. https://doi.org/10.1111/fire.12361

Vancouver

Fosu S, Agyei-Boapeah H, Ciftci N. Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries. The Financial Review. 2023 Jul 25;58(4):783-810. Epub 2023 Jul 25. doi: 10.1111/fire.12361

Author

Fosu, Samuel ; Agyei-Boapeah, Henry ; Ciftci, Neytullah. / Credit information sharing and cost of debt : evidence from the introduction of credit bureaus in developing countries. In: The Financial Review. 2023 ; Vol. 58, No. 4. pp. 783-810.

Bibtex

@article{cfd04a84dbbc41a2ba4aa37c9e346d19,
title = "Credit information sharing and cost of debt: evidence from the introduction of credit bureaus in developing countries",
abstract = "We investigate the effect of credit information sharing on cost of debt, with particular focus on the introduction of credit bureaus in developing countries. Using a large dataset of firms from 28 developing countries over the period 2004-2019, we find that firms{\textquoteright} average cost of debt significantly declines following the introduction of credit bureaus. This finding is robust to an alternative measure of cost of debt, several firm- and country-level controls and to firm- and yearfixed effects. The reduction in cost of debt is more pronounced for less transparent firms and for firms domiciled in countries with weak institutional framework. ",
keywords = "Economics and Econometrics, Finance",
author = "Samuel Fosu and Henry Agyei-Boapeah and Neytullah Ciftci",
year = "2023",
month = jul,
day = "25",
doi = "10.1111/fire.12361",
language = "English",
volume = "58",
pages = "783--810",
journal = "The Financial Review",
issn = "1540-6288",
publisher = "Wiley",
number = "4",

}

RIS

TY - JOUR

T1 - Credit information sharing and cost of debt

T2 - evidence from the introduction of credit bureaus in developing countries

AU - Fosu, Samuel

AU - Agyei-Boapeah, Henry

AU - Ciftci, Neytullah

PY - 2023/7/25

Y1 - 2023/7/25

N2 - We investigate the effect of credit information sharing on cost of debt, with particular focus on the introduction of credit bureaus in developing countries. Using a large dataset of firms from 28 developing countries over the period 2004-2019, we find that firms’ average cost of debt significantly declines following the introduction of credit bureaus. This finding is robust to an alternative measure of cost of debt, several firm- and country-level controls and to firm- and yearfixed effects. The reduction in cost of debt is more pronounced for less transparent firms and for firms domiciled in countries with weak institutional framework.

AB - We investigate the effect of credit information sharing on cost of debt, with particular focus on the introduction of credit bureaus in developing countries. Using a large dataset of firms from 28 developing countries over the period 2004-2019, we find that firms’ average cost of debt significantly declines following the introduction of credit bureaus. This finding is robust to an alternative measure of cost of debt, several firm- and country-level controls and to firm- and yearfixed effects. The reduction in cost of debt is more pronounced for less transparent firms and for firms domiciled in countries with weak institutional framework.

KW - Economics and Econometrics

KW - Finance

U2 - 10.1111/fire.12361

DO - 10.1111/fire.12361

M3 - Journal article

VL - 58

SP - 783

EP - 810

JO - The Financial Review

JF - The Financial Review

SN - 1540-6288

IS - 4

ER -