Publication:
The Impact of the Business Environment on Young Firm Financing

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creativeworkseries.issn1564-698X
dc.contributor.authorChavis, Larry W.
dc.contributor.authorKlapper, Leora F.
dc.contributor.authorLove, Inessa
dc.date.accessioned2013-05-21T15:59:25Z
dc.date.available2013-05-21T15:59:25Z
dc.date.issued2011-10-18
dc.description.abstractA unique dataset of over 70,000 firms, most of which are small, in over 100 countries, is utilized to systematically study the use of different financing sources for new and young firms. Consistent age-related patterns emerge. Across all countries younger firms rely less on bank financing and more on informal financing. There is a clear substitution effect: as firms mature, more firms switch out of informal finance toward bank finance, while the total proportion of firms using external finance remains relatively unchanged. Importantly, these relationships hold for firms of different sizes, firms in different sectors, and firms located in countries with different income levels and on different continents. Thus, these patterns of young firm financing show clear universal tendencies. Given that even small firms increasingly use formal bank financing over time, these results suggest that information asymmetry plays an important role in decreasing a young firm's ability to obtain bank finance.en
dc.identifier.citationWorld Bank Economic Review
dc.identifier.doi10.1596/13488
dc.identifier.issn1564-698X
dc.identifier.otherdoi:10.1093/wber/lhr045
dc.identifier.urihttps://hdl.handle.net/10986/13489
dc.language.isoen_US
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectAccess to external finance
dc.subjectbank financing
dc.subjectearnings
dc.subjecteconomic development
dc.subjectEntrepreneur
dc.subjectEntrepreneurial Finance
dc.subjectentrepreneurs
dc.subjectexternal finance
dc.subjectfinancial development
dc.subjectformal bank
dc.subjectgrowth opportunities
dc.subjectinformal finance
dc.subjectinformal financing
dc.subjectinformation asymmetry
dc.subjectinternal funds
dc.subjectInternational Bank
dc.subjectinvestment opportunities
dc.subjectnew business
dc.subjectprofitability
dc.subjectsmall businesses
dc.titleThe Impact of the Business Environment on Young Firm Financingen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.disclosure2013-04-18
okr.date.doiregistration2025-05-06T10:53:25.997406Z
okr.doctypeJournal Article
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.identifier.doi10.1093/wber/lhr045
okr.journal.nbpages486-507
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.geographicalAfrica
okr.region.geographicalCaribbean
okr.region.geographicalEast Asia
okr.region.geographicalNorth Africa
okr.region.geographicalSouth Asia
okr.region.geographicalMiddle East
okr.region.geographicalEurope and Central Asia
okr.region.geographicalEastern Europe
okr.region.geographicalLatin America
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicPrivate Sector Development::Emerging Markets
okr.topicPrivate Sector Development::Microenterprises
okr.topicPrivate Sector Development::Small and Medium Size Enterprises
okr.topicSocial Protections and Labor::Labor Policies
okr.volume25(3)
relation.isJournalIssueOfPublicationbaa25a54-0559-4483-ae13-74491dd867b4
relation.isJournalIssueOfPublication.latestForDiscoverybaa25a54-0559-4483-ae13-74491dd867b4
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublicatione0142101-3f2f-4335-8ea0-6dbed470dc64
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