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

dc.contributor.author Beck, Thorsten
dc.contributor.author Demirguc-Kunt, Asli
dc.contributor.author Maksimovic, Vojislav
dc.date.accessioned 2013-09-04T19:57:35Z
dc.date.available 2013-09-04T19:57:35Z
dc.date.issued 2002-02
dc.description.abstract Using 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.identifier http://documents.worldbank.org/curated/en/2002/02/1715978/financial-legal-constraints-firm-growth-size-matter
dc.identifier.uri http://hdl.handle.net/10986/15616
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 2784
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject FINANCIAL NEEDS
dc.subject FINANCIAL REPRESSION
dc.subject LEGAL FRAMEWORK
dc.subject FIRM SIZE
dc.subject GROWTH PROJECTIONS
dc.subject SURVEY DATA
dc.subject CORRUPTION
dc.subject POLICY PLANNING
dc.subject SMALL & MEDIUM SCALE ENTERPRISES
dc.subject PERFORMANCE INDICATORS
dc.subject INSTITUTIONAL FRAMEWORK
dc.subject FINANCIAL INSTITUTIONS
dc.subject MONITORING CRITERIA
dc.subject INFORMATION COLLECTION ACCESS TO INFORMATION
dc.subject BANKING SYSTEM
dc.subject BUREAUCRACY
dc.subject BUSINESS ENVIRONMENT
dc.subject COMPETITORS
dc.subject CORPORATE FINANCE
dc.subject CORRUPTION
dc.subject CORRUPTION ISSUES
dc.subject CORRUPTION PROBLEMS
dc.subject COUNTRIES FIRMS
dc.subject COUNTRY CHARACTERISTICS
dc.subject COURT SYSTEM
dc.subject COVENANTS
dc.subject CRIME
dc.subject ECONOMIC DEVELOPMENT
dc.subject ECONOMIC GROWTH
dc.subject EMPLOYMENT
dc.subject FINANCIAL CONSTRAINTS
dc.subject FINANCIAL DEVELOPMENT
dc.subject FINANCIAL INFORMATION
dc.subject FINANCIAL INSTITUTIONS
dc.subject FINANCIAL MARKETS
dc.subject FINANCIAL SECTOR
dc.subject FINANCIAL SYSTEM
dc.subject FINANCIAL SYSTEMS
dc.subject FINANCING CONSTRAINTS
dc.subject FIRM SIZE
dc.subject FOREIGN BANKS
dc.subject FOREIGN ENTITIES
dc.subject GOVERNMENT OFFICIALS
dc.subject GROWTH RATE
dc.subject GROWTH RATES
dc.subject INTERNATIONAL DEVELOPMENT
dc.subject JUDICIARY
dc.subject LAWS
dc.subject LEASING
dc.subject LEGAL DEVELOPMENT
dc.subject LEGAL INSTITUTIONS
dc.subject LEGAL ORIGINS
dc.subject LEGAL SYSTEM
dc.subject LEGAL SYSTEMS
dc.subject LOCAL AUTHORITIES
dc.subject LOCAL INSTITUTIONS
dc.subject MEDIUM ENTERPRISES
dc.subject NATIONAL LEVEL
dc.subject PER CAPITA INCOMES
dc.subject POLICY IMPLICATIONS
dc.subject PROPERTY RIGHTS
dc.subject RULE OF LAW
dc.subject SMALL FIRMS
dc.subject SOFT BUDGET CONSTRAINTS
dc.subject UNOFFICIAL ECONOMY
dc.subject VIOLATIONS
dc.title Financial and Legal Constraints to Firm Growth : Does Size Matter? en
dspace.entity.type Publication
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2002/02/1715978/financial-legal-constraints-firm-growth-size-matter
okr.globalpractice Transport and ICT
okr.globalpractice Finance and Markets
okr.globalpractice Governance
okr.identifier.doi 10.1596/1813-9450-2784
okr.identifier.externaldocumentum 000094946_02030504085434
okr.identifier.internaldocumentum 1715978
okr.identifier.report WPS2784
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2002/03/15/000094946_02030504085434/Rendered/PDF/multi0page.pdf en
okr.sector Other Finance
okr.sector Finance
okr.topic Finance and Financial Sector Development :: Microfinance
okr.topic Law and Development :: Legal Products
okr.topic Public Sector Development :: Decentralization
okr.topic Small Scale Enterprise
okr.topic Payment Systems and Infrastructure
okr.topic Governance :: National Governance
okr.topic Governance :: Governance Indicators
okr.topic Infrastructure Economics and Finance :: Private Participation in Infrastructure
okr.unit Development Research Group (DECRG)
okr.volume 1
relation.isAuthorOfPublication 4694cd5a-bd90-594b-abe2-f5b681139e6d
relation.isAuthorOfPublication 234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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