How Regulation Affects the Relevance of Bank-Debt Maturity as a Control Mechanism in Developed Countries

Abstract

Abstract. Improvements in transparency at the country level have modified the relevance of bank debt maturity as a control mechanism. The novelty of this research is that we provide empirical evidence that the maturity of bank borrowing is contingent on the characteristics of the regulatory and the institutional setting about corporate governance. The main implication of our paper is that corporate governance rules have greater influence in civil-law countries than in common-law countries in promoting efficiency in the use of bank debt maturity. The value of this paper is that our results confirm that the implementation of similar regulations on transparency across countries with different legal systems favors the alignment of the role played by short-term bank debt in addressing asymmetric information, agency costs, and inefficient liquidation.

Real earnings management and corporate governance: a study of Latin America

“…Three measures are used that consider the ownership structure features per firm: ownership concentration (OCÞ, inside ownership (IOÞ and institutional ownership (IIOÞ: Following Castro Martins, Schiehll, and Soares Terra (2017) and Lefort and Urz ua (2008), among many others, OC variable is computed as the proportion of shares directly or indirectly owned by the majority shareholder. In order to generate the inside ownership IO ð Þ metric, we followed Saona and San Mart ın (2018), , Saona and Muro (2018) and Vallelado, Saona, and San Mart ın (2017). 7 Hence, IO variable is the proportion of shares !…”

Real Earnings Management and Corporate Governance: A Study for Latin America

“…Lefort and Urz ua (2008), among many others, OC variable is computed as the proportion of shares directly or indirectly owned by the majority shareholder. In order to generate the inside ownership IO ð Þ metric, we followed Saona and San Mart ın (2018), , Saona and Muro (2018) and Vallelado, Saona, and San Mart ın (2017). 7 Hence, IO variable is the proportion of shares !…”