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,

Battaglia, F., Carboni, M., Cicchiello, A. F., Monferrà, S., Assessing the effects of anti-corruption law on entrepreneurial finance: evidence from Latin America., <<JOURNAL OF EMERGING MARKET FINANCE>>, 2021; 20 (1): 48-78. [doi:10.1177/0972652720932783] [http://hdl.handle.net/10807/160318]

Assessing the effects of anti-corruption law on entrepreneurial finance: evidence from Latin America.

Cicchiello, Antonella Francesca
;
Monferrà, Stefano
2020

Abstract

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,
Inglese
Battaglia, F., Carboni, M., Cicchiello, A. F., Monferrà, S., Assessing the effects of anti-corruption law on entrepreneurial finance: evidence from Latin America., <<JOURNAL OF EMERGING MARKET FINANCE>>, 2021; 20 (1): 48-78. [doi:10.1177/0972652720932783] [http://hdl.handle.net/10807/160318]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/160318
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