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., Monferra', 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] [https://hdl.handle.net/10807/160318]

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

Cicchiello, Antonella Francesca
;
Monferra', 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,
2020
Inglese
Battaglia, F., Carboni, M., Cicchiello, A. F., Monferra', 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] [https://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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