High secrecy cultures are characterized by a preference for confidentiality and non-disclosure of information. This study documents the impact of cultural differences in secrecy on firms’ access to credit. We use data from the World Bank Enterprise Surveys for a large sample of firms operating in 35 countries from 2010 to 2019. We show that firms operating in countries with higher levels of secrecy are less likely to apply for credit when they need it—they are more discouraged—and also less likely to receive credit when they do apply—they are more rationed. The underlying economic channels are greater opacity and corruption in cultures with high secrecy. The effect of cultural secrecy on credit discouragement and credit rationing is moderated by trust in banks, interpersonal trust, and firms’ financial dependence on external sources. We control for several potential alternative drivers and conduct several robustness tests. The results confirm that firms have better access to credit in cultures that promote transparency and information disclosure.

This study examines the relationship between family firms and carbon emissions using a large cross-country dataset of 6600 non-financial firms over the period 2010–2019. We find that family firms emit less carbon than non-family firms, especially after the Paris Agreement. Several factors contribute to this outcome, including governance structure, the degree of family control, R&D spending, and the issuance of green patents. Our study also shows that despite lower carbon emissions, family firms have lower environmental scores, primarily due to their reduced public commitment to emission reduction. Both environmental scores and carbon emissions increase when non-family CEOs are appointed and when family ownership decreases, indicating that agency conflicts may influence these outcomes.