Information Sharing and Credit: Firm-Level Evidence from Transition Countries

By Martin Brown, Tullio Jappelli, M. Pagano. 2009

512 citations recorded by the source corpus.

We investigate whether information sharing among banks has affected credit market performance in the transition countries of Eastern Europe and the former Soviet Union, using a large sample of firm-level data. Our estimates show that information sharing is associated with improved availability and lower cost of credit to firms. This correlation is stronger for opaque firms than transparent ones and stronger in countries with weak legal environments than in those with strong legal environments. In cross-sectional estimates, we control for variation in country-level aggregate variables that may affect credit, by examining the differential impact of information sharing across firm types. In panel estimates, we also control for the presence of unobserved heterogeneity at the firm level, as well as for changes in macroeconomic variables and the legal environment.

Subfields: Economics and Econometrics, Finance, Information Systems

View Paper: https://www.semanticscholar.org/paper/e33a29e6b5080d3f47137e9d72120844351cbe66

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Finance

In Information Systems

Citations in the corpus

Access to Credit, Natural Disasters, and Relationship Lending (2012, background): “Important aspects include, among others, the enforceability of contracts, the protection of property rights, and the availability of credit registries (Beck et al., 2004, 2008; Brown et al., 2009).”
Information Sharing and Financial Sector Development in Africa (2017, background): “…& Gajigo, 2014); mitigate rates of defaults (Jappelli & Pagano, 2002); influence syndicated bank loans (Ivashina, 2009; Tanjung et al., 2010); reduce the cost of credit (Brown et al., 2009); influence corrupt-related lending (Barth et al., 2009) and affect antitrust intervention (Coccorese, 2012).”
Does credit reporting lead to a decline in relationship lending? Evidence from information sharing technology (2018, unknown): “Firm-level analyses surrounding the adoption or reform of information sharing in developing countries also detect increases in borrowing (Brown et al. 2009; Peria and Singh 2014).”
Information Asymmetry and Financial Development Dynamics in Africa (2016, unknown): “The former (i), has examined how the sharing of information improves credit availability (Djankov et al., 2007; Brown et al., 2009; Triki & Gajigo, 2014), reduce credit cost”
Does Collateral Help Mitigate Adverse Selection? A Cross-Country Analysis (2011, unknown): “In line with this finding, Brown et al. (2009) have empirically showed that information sharing contributes to a reduction in the cost of credit for borrowers in transition countries.”
Corruption in bank lending to firms : cross-country micro evidence on the beneficial role of competition and information sharing (2009, background): “Claessens and Laeven (2004) use an alternative measure of bank-market contestability, the H-statistic, developed in the industrial organization literature, to evaluate the level of bank competition in 50 countries. However, to the best of our knowledge, no study has examined the impact of bank compe”
Multiple-Bank Lending, Creditor Rights and Information Sharing (2009, unknown): “This substitutability relationship between information sharing and creditor protection is consistent with the evidence of Djankov et al. (2007) and Brown et al. (2009).”
Cross-Border Banking and the International Transmission of Financial Distress During the Crisis of 2007-2008 (2010, background): “Regarding the rst point, it is generally predicted that riskier rms and rms with fewer tangible assets are more likely to be shut out of credit markets (see, for example, Berger, Ofek, and Swary (1996), Beck, Demirg u c-Kunt, and Maksimovic (2005), and Brown, Jappelli, and Pagano (2009)).”
How Bank Competition Affects Firms' Access to Finance (2012, unknown): “See, for example, Jappelli and Pagano (2002), Love and Mylenko (2005), Djankov et al. (2007), Brown et al. (2009), and Houston et al. (2010). environment where good credit information sharing schemes are in place, asymmetric information should be less of a concern for banks; hence, they will have…”
'Lending by Example': Direct and Indirect Effects of Foreign Banks in Emerging Markets (2012, unknown): “We find such reporting biases unlikely, mostly because countries in our sample have credit registries to which extensive credit information about the firm must be reported (Brown et al., 2009).”
The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality (2019, background): “…credit availability (Brown, Jappelli, & Pagano, 2009; Djankov, McLeish, & Shleifer, 2007; Triki & Gajigo, 2014), decreases costs of credits (Brown et al., 2009), reduces default rates (Jappelli & Pagano, 2002), influences syndicated bank loans (Ivashina, 2009, Tanjung, Marciano, & Bartle,…”