Assessing the effects of anti-corruption law on entrepreneurial finance: evidence from Latin America
| Autor: | Antonella Francesca Cicchiello, Stefano Monferrà, Marika Carboni, Francesca Battaglia |
|---|---|
| Přispěvatelé: | Carboni, Marika, Battaglia, Francesca, Monferrà, Stefano, francesca cicchiello, Antonella |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
050208 finance Latin Americans Distrust Corruption media_common.quotation_subject SME Financing 05 social sciences Affect (psychology) Entrepreneurial finance Latin America Settore SECS-P/11 - ECONOMIA DEGLI INTERMEDIARI FINANZIARI Entrepreneurial Finance Anti corruption 0502 economics and business Development economics Economics Equity Crowdfunding Equity crowdfunding 050203 business & management Finance media_common |
| Popis: | Corruption normally causes distrust among investors and can negatively affect investments. Particularly in Latin America, decline of investments is one of the most significant problems. In such a context, anti-corruption laws can both fight corruption and promote business, restoring investors’ trust. In this article, we ask whether the introduction of an anti-corruption framework affecting both the public and private spheres is able to increase investors’ confidence in a new form of investment, that is, equity crowdfunding. By using a unique database, with combined information from different platforms in Brazil, Chile and Mexico, we study the population of 492 projects between 2013 and 2017. Implementing a set of linear probability regressions, we find that the new Mexican anti-corruption law has increased the probability of success of equity crowdfunding projects in this country, compared to Brazilian and Chilean projects, suggesting the existence of a causal relation between anti-corruption rules and investments in a highly perceived corrupt environment further characterised by a low level of investor protection.JEL Classification: G23, G28, K22, L26 |
| Databáze: | OpenAIRE |
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