Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Resource Curse: A Corporate Transparency Channel

Abstract : We propose a new channel through which expropriation risk reduces capital allocation efficiency and decreases firm growth. We build an agency model of corporate disclosure when companies face risks of expropriation. The model predicts that in countries with insecure property rights, corporations mitigate the risk of expropriation by reducing transparency. We test this channel by employing a difference-in-difference approach. Using a panel of over 16,000 firms from 84 countries, we find that transparency of companies prone to expropriation is lower in countries with insecure property rights. The reduced transparency has an adverse effect on the efficiency of capital allocation and corporate growth.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

https://hal-sciencespo.archives-ouvertes.fr/hal-03473798
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Friday, December 10, 2021 - 3:24:09 AM
Last modification on : Friday, March 25, 2022 - 3:32:05 AM

File

durnev-guriev-randr-jour-of-fi...
Files produced by the author(s)

Identifiers

Collections

Citation

Art Durnev, Sergei Guriev. Resource Curse: A Corporate Transparency Channel. 2011. ⟨hal-03473798⟩

Share

Metrics

Record views

2

Files downloads

0