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Political Uncertainty and the Choice of Debt Sources

Bennasr, H.; Bouslimi, L.; Ebrahim, M.S.; Zhong, R.

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Authors

H. Bennasr

L. Bouslimi

R. Zhong



Abstract

This paper studies the effect of political uncertainty on the choice of debt sources. We find a positive relationship between political uncertainty stemming from elections and the proportion of bank loans over total debts, especially when elections are closely contested. Furthermore, this relationship is stronger in opaque firms and more financially constrained firms as well as firms from countries with weaker shareholder rights, labor protection, creditor rights and national governance.

Citation

Bennasr, H., Bouslimi, L., Ebrahim, M., & Zhong, R. (2020). Political Uncertainty and the Choice of Debt Sources. Journal of International Financial Markets, Institutions and Money, 64, Article 101142. https://doi.org/10.1016/j.intfin.2019.101142

Journal Article Type Article
Acceptance Date Nov 2, 2019
Online Publication Date Nov 5, 2019
Publication Date Jan 31, 2020
Deposit Date Nov 9, 2019
Publicly Available Date Nov 5, 2020
Journal Journal of International Financial Markets, Institutions and Money
Print ISSN 1042-4431
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 64
Article Number 101142
DOI https://doi.org/10.1016/j.intfin.2019.101142
Public URL https://durham-repository.worktribe.com/output/1283725

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