Political connections, bailout in financial markets and firm value
The paper shows that politically motivated interventions in the financial market in the form of bailing out borrowing firms reduce banks’ incentives to gather valuable information about firms’ projects. This loss of information is a hidden cost which adversely affects firm value. Firms invest resour...
| Main Authors: | , , |
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| Format: | Article |
| Published: |
Elsevier
2016
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/40414/ |