Economic Preferences Over Risk-Taking and Corporate Finance

We contend that economic preferences over risk-taking in different subnational regions worldwide affect fundamental aspects of firms’ corporate financing, namely financing costs and capital structure. study this hypothesis, by hand-matching with the corresponding regional preferences. Our baseline results show credit bond pricing increase higher preferences, whereas such yield lower ratios book leverage short-term debt. backup our an instrumental variables approach, which is based on premise high-yield agricultural societies pre-industrial era exhibit low