Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10475838 | Journal of Financial Economics | 2005 | 27 Pages |
Abstract
Government ownership of banks is very common in countries other than the United States. This paper provides cross-country, bank-level empirical evidence about political influences on these banks. It shows that government-owned banks increase their lending in election years relative to private banks. This effect is robust to controlling for country-specific macroeconomic and institutional factors as well as bank-specific factors. The increase in lending is about 11% of a government-owned bank's total loan portfolio or about 0.5% of the median country's GDP per election per government-owned bank.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
I. Serdar Dinç,