search query: @indexterm Banks / total: 1629
reference: 242 / 1629
| Author: | Dobrinsky, R. |
| Title: | Corporate Financial Flows and Access to Bank Finance Under Distorted and Perverse Incentives |
| Journal: | Russian and East European Finance and Trade
2001 : MAR-APR, VOL. 37:2, p. 78-114 |
| Index terms: | CORPORATE FINANCE BANKS INCENTIVES |
| Language: | eng |
| Abstract: | This paper considers Bulgarian firms on the eve of the financial crisis. The paper deals some of the issues related to the motivation of financial flows, and studies some of the determinants of financial indiscipline and bad loans, two factors that contributed to the escalation of the financial crisis in Bulgaria. In this paper, the authors suggest that financial flows in this period were strongly affected by perverse behavior of economic agents, which in turn was motivated by distorted and perverse incentives facing the corporate and banking sectors, and possibly among regulatory bodies and state institutions, as well. The authors analyze statistically two main types of corporate financial flows-bank finance and payables to the state-on the basis of a comprehensive body of microeconomic empirical data, and find strong evidence in support of the hypothesis. |
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