![](local/cache-vignettes/L300xH470/rubon9-59d38.jpg?1724744805)
-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
PATH-DEPENDENCY AND CORPORATE GOVERNANCE IN ITALY: THE POLITICAL ORIGINS OF DEBT FINANCING
Download This ArticleAbstract
In this paper we investigate the emergence and the co-evolution of institutional complementarities between debt and equity as alternative financial instruments in the case of Italy. We focus on the evolution of Italian firms (related to the benchmark years from 1952 to 1991). Through the data collected we observed the collaterals that firms were able to transfer to loan institutes. We also examined the factors which made difficult to switch to equity financing, comparing the rate of profitability of Italian firms with alternative investments. The results show a financial structure for Italian firms that rely exclusively on debt, independently of the public or private nature of firms’ property and of the economic sector. This anomaly seems to be the consequence of path-dependencies between “political origins” and firm’s governance structure in Italy.
Keywords: Corporate Governance, Debt Financing, Equity Financing
How to cite this paper: Nicita, A., & Vannini, R. (2007). Path-dependency and corporate governance in Italy: The political origins of debt financing. [Special Issue]. Corporate Ownership & Control, 4(4-4), 92-105. https://doi.org/10.22495/cocv4i4c4p8