Template-Type: ReDIF-Paper 1.0
Author-Name: Tesfaye T Lemma
Author-Name: Michael Machokoto
Author-Name: Tendai Gwatidzo
Title: Basel III regulations and financing decisions of nonfinancial firms the South African evidence
Abstract: This study examines the impact of the Basel III regulatory framework on financing decisions within South Africas real sector. Using a sample of 2 045 firm-year observations spanning the years 20112015 and employing the difference-in-differences approach, we find a significant decrease in debt financing and debt maturity for firms deemed constrained relative to unconstrained firms in the post-Basel III implementation period. Further analyses suggest that the Basel III regulatory framework has a persistent effect on financing decisions in the real sector. Our findings indicate that the Basel III regulatory framework reduces leverage and debt maturity, especially for constrained firms.
Creation-Date: 2024-10-14
File-URL: https://www.resbank.co.za/content/dam/sarb/publications/working-papers/2024/basel-III-regulations-and-financing-decisions-of-non-financial-firms-the-south-african-evidence.pdf
File-Format: application/pdf
File-Function: Revision
Number: 11067
Handle: RePEc:rbz:wpaper:11067