Publication:
Formal Versus Informal Finance : Evidence from China

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dc.contributor.authorAyyagari, Meghana
dc.contributor.authorDemirguc-Kunt, Asli
dc.contributor.authorMaksimovic, Vojislav
dc.date.accessioned2012-03-30T07:29:53Z
dc.date.available2012-03-30T07:29:53Z
dc.date.issued2010
dc.description.abstractThe fast growth of Chinese private sector firms is taken as evidence that informal finance can facilitate firm growth better than formal banks in developing countries. We examine firm financing patterns and growth using a database of twenty-four hundred Chinese firms. While a relatively small percentage of firms utilize bank loans, bank financing is associated with faster growth whereas informal financing is not. Controlling for selection, we find that firms with bank financing grow faster than similar firms without bank financing and that our results are not driven by bank corruption or the selection of firms that have accessed the formal financial system. Our findings question whether reputation and relationship-based financing are responsible for the performance of the fastest-growing firms in developing countries.en
dc.identifier.citationReview of Financial Studies
dc.identifier.issn08939454
dc.identifier.urihttps://hdl.handle.net/10986/4818
dc.language.isoEN
dc.relation.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights.holderWorld Bank
dc.subjectBanks
dc.subjectOther Depository Institutions
dc.subjectMicro Finance Institutions
dc.subjectMortgages G210
dc.subjectFinancing Policy
dc.subjectFinancial Risk and Risk Management
dc.subjectCapital and Ownership Structure G320
dc.subjectFirm Performance: Size, Diversification, and Scope L250
dc.subjectEconomic Development: Financial Markets
dc.subjectSaving and Capital Investment
dc.subjectCorporate Finance and Governance O160
dc.subjectSocialist Institutions and Their Transitions: Financial Economics P340
dc.titleFormal Versus Informal Finance : Evidence from Chinaen
dc.title.alternativeReview of Financial Studiesen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.doctypeJournal Article
okr.externalcontentExternal Content
okr.identifier.externaldocumentum136
okr.journal.nbpages3048-3097
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.countryChina
okr.relation.associatedurlhttp://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=1126891&site=ehost-live
okr.relation.associatedurlhttp://rfs.oxfordjournals.org
okr.volume23
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
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