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Financial and Legal Constraints to Firm Growth : Does Size Matter?

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dc.contributor.authorMaksimovic, Vojislav
dc.contributor.authorBeck, Thorsten
dc.contributor.authorDemirguc-Kunt, Asli
dc.date.accessioned2013-09-04T19:57:35Z
dc.date.available2013-09-04T19:57:35Z
dc.date.issued2002-02
dc.description.abstractUsing a unique firm-level survey data base, covering fifty four countries, the authors investigate whether different financial, legal, and corruption issues that firms report as constraints, actually affect their growth rates. The results show that the extent to which these factors constrain a firm's growth depends very much on its size, and that it is consistently the smallest firms that are most adversely affected by all these constraints. Firm growth is more affected by reported constraints in countries with underdeveloped financial, and legal systems, and higher corruption. So, policy measures to improve financial, and legal development, and reduce corruption are well justified in promoting firm growth, particularly the development of the small, and medium enterprise sector. But the evidence also shows that the intuitive descriptors of an "efficient" legal system, are not correlated with the components of the general legal constraints that predict firm growth. This finding suggests that the mechanism by which the legal system affects firm performance, is not well understood. The authors' findings also provide evidence that the corruption of bank officials, constraints firm growth. This "institutional failure" should be taken into account, when modeling the monitoring role of financial institutions in overcoming market failures due to informational asymmetries.en
dc.identifierhttp://documents.worldbank.org/curated/en/2002/02/1715978/financial-legal-constraints-firm-growth-size-matter
dc.identifier.doi10.1596/1813-9450-2784
dc.identifier.urihttps://hdl.handle.net/10986/15616
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2784
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFINANCIAL NEEDS
dc.subjectFINANCIAL REPRESSION
dc.subjectLEGAL FRAMEWORK
dc.subjectFIRM SIZE
dc.subjectGROWTH PROJECTIONS
dc.subjectSURVEY DATA
dc.subjectCORRUPTION
dc.subjectPOLICY PLANNING
dc.subjectSMALL & MEDIUM SCALE ENTERPRISES
dc.subjectPERFORMANCE INDICATORS
dc.subjectINSTITUTIONAL FRAMEWORK
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectMONITORING CRITERIA
dc.subjectINFORMATION COLLECTION ACCESS TO INFORMATION
dc.subjectBANKING SYSTEM
dc.subjectBUREAUCRACY
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCOMPETITORS
dc.subjectCORPORATE FINANCE
dc.subjectCORRUPTION
dc.subjectCORRUPTION ISSUES
dc.subjectCORRUPTION PROBLEMS
dc.subjectCOUNTRIES FIRMS
dc.subjectCOUNTRY CHARACTERISTICS
dc.subjectCOURT SYSTEM
dc.subjectCOVENANTS
dc.subjectCRIME
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYMENT
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL INFORMATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFINANCING CONSTRAINTS
dc.subjectFIRM SIZE
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN ENTITIES
dc.subjectGOVERNMENT OFFICIALS
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectJUDICIARY
dc.subjectLAWS
dc.subjectLEASING
dc.subjectLEGAL DEVELOPMENT
dc.subjectLEGAL INSTITUTIONS
dc.subjectLEGAL ORIGINS
dc.subjectLEGAL SYSTEM
dc.subjectLEGAL SYSTEMS
dc.subjectLOCAL AUTHORITIES
dc.subjectLOCAL INSTITUTIONS
dc.subjectMEDIUM ENTERPRISES
dc.subjectNATIONAL LEVEL
dc.subjectPER CAPITA INCOMES
dc.subjectPOLICY IMPLICATIONS
dc.subjectPROPERTY RIGHTS
dc.subjectRULE OF LAW
dc.subjectSMALL FIRMS
dc.subjectSOFT BUDGET CONSTRAINTS
dc.subjectUNOFFICIAL ECONOMY
dc.subjectVIOLATIONS
dc.titleFinancial and Legal Constraints to Firm Growth : Does Size Matter?en
dspace.entity.typePublication
okr.crossref.titleFinancial and Legal Constraints to Firm Growth: Does Size Matter?
okr.date.doiregistration2025-04-10T09:58:35.140522Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2002/02/1715978/financial-legal-constraints-firm-growth-size-matter
okr.globalpracticeTransport and ICT
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid607621468779405763
okr.identifier.doi10.1596/1813-9450-2784
okr.identifier.externaldocumentum000094946_02030504085434
okr.identifier.internaldocumentum1715978
okr.identifier.reportWPS2784
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2002/03/15/000094946_02030504085434/Rendered/PDF/multi0page.pdfen
okr.sectorOther Finance
okr.sectorFinance
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicLaw and Development::Legal Products
okr.topicPublic Sector Development::Decentralization
okr.topicSmall Scale Enterprise
okr.topicPayment Systems and Infrastructure
okr.topicGovernance::National Governance
okr.topicGovernance::Governance Indicators
okr.topicInfrastructure Economics and Finance::Private Participation in Infrastructure
okr.unitDevelopment Research Group (DECRG)
okr.volume1
relation.isAuthorOfPublication4694cd5a-bd90-594b-abe2-f5b681139e6d
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery4694cd5a-bd90-594b-abe2-f5b681139e6d
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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