BIROn - Birkbeck Institutional Research Online

    Social capital, community governance and credit market

    Andriani, Luca (2010) Social capital, community governance and credit market. Working Paper. Birkbeck College, University of London, London, UK.

    [img]
    Preview
    Text
    7552.pdf - Published Version of Record

    Download (266kB) | Preview

    Abstract

    Abstract Financial contracts represent an exchange of financial resources today, such as money, for a promise to return more financial resources tomorrow. The aim of the paper is to test whether cheating or respecting a promise, in particular a “financial one”, is also a matter of community norms in which the individuals are involved. According to the social capital literature, where a community is characterised by a high level of social capital, then a higher level of civic engagement, trustworthiness and self monitoring among its members occur. These elements characterise the so called community governance. By using regional data from Italy, the paper will analyse the association between the community governance, through different aspects of social capital, and credit market variables such as interest rate, credit supply and insolvency rate without and with legal institutional enforcements. Empirical evidence shows that, in absence of legal enforcement, indicators of structural social capital, civic engagement and outcome-based social capital are positively related to better credit market performances. When legal enforcement is included in our models still social capital, through the civic engagement aspect, negatively affects the insolvency rate by confirming our hypothesis of complementarity among community state and market.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: BWPEF 1003
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Research Centres and Institutes: Responsible Business Centre, Innovation Management Research, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 24 Jun 2013 10:56
    Last Modified: 02 Aug 2023 17:05
    URI: https://eprints.bbk.ac.uk/id/eprint/7552

    Statistics

    Activity Overview
    6 month trend
    224Downloads
    6 month trend
    656Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item
    Edit/View Item