Sun, XifangLin, Justin YifuJiang, Ye2012-03-192012-03-192009-09-01https://hdl.handle.net/10986/4232Each institutional arrangement in a financial system has both advantages and disadvantages in mobilizing savings, allocating capital, diversifying risks, and processing information when facilitating financial transactions. Meanwhile, the factor endowment in an economy at each stage of its development determines the optimal industrial structure in the real sector, which in turn constitutes the main determinant of the size distribution and risk features of viable enterprises with implications for the appropriate institutional arrangement of financial services at that stage. Therefore, there is an endogenously determined optimal financial structure for the economy at each stage of development.CC BY 3.0 IGOACCESS TO BANKACCESS TO BANK LOANSACCESS TO CREDITACCESS TO SERVICESACCOUNTINGADVANCED ECONOMIESADVANCED ECONOMYAGENCY PROBLEMAGENCY PROBLEMSALTERNATIVE FINANCIAL INSTITUTIONSAMOUNT OF CAPITALAUDITINGAUDITORSBANK BRANCHBANK COMPETITIONBANK DEPOSITSBANK MERGERSBANK OFFICERSBANK POLICYBANKING CONCENTRATIONBANKING INDUSTRYBANKING SECTORBANKING STRUCTUREBANKING STRUCTURESBANKING SYSTEMBANKRUPTCYBANKSBARRIER TO ENTRYBIDSBIG BANKSBONDBOND FINANCINGBOND HOLDERSBOND ISSUERSBOND ISSUINGBOND MARKETSBORROWERBORROWINGBUSINESS OPERATIONCAPITAL ALLOCATIONCAPITAL COSTCAPITAL MARKETSCASH FLOWSCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKSCOMPETITIVE MARKETCORPORATE BONDSCORPORATE FINANCECORPORATE GOVERNANCECREDIT HISTORYCREDIT MARKETCREDIT MARKETSCREDIT RATIONINGCREDITORSDEBTDEBT MARKETSDEBTSDEMAND FOR CAPITALDEPOSITDEPOSIT INSURANCEDEPOSIT INTERESTDEPOSITORSDEPOSITSDEVELOPING COUNTRIESECONOMIC AGENTSECONOMIC CONDITIONSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICYECONOMIC REFORMECONOMICSECONOMIES OF SCALEECONOMY OF SCALEENDOWMENTSENTREPRENEURENTREPRENEURSHIPEQUITIESEQUITY FINANCINGEXTERNAL FINANCEEXTERNAL FINANCINGEXTERNAL FUNDFEDERAL RESERVEFEDERAL RESERVE BANKFINANCIAL ARRANGEMENTFINANCIAL CREDITFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEEPENINGFINANCIAL DEVELOPMENTFINANCIAL ECONOMISTSFINANCIAL HISTORYFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIARYFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL REGULATIONSFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCIAL STRUCTUREFINANCIAL STRUCTURESFINANCIAL STUDIESFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL TRANSACTIONSFINANCING COSTSFINANCING NEEDSFOREIGN BANKFOREIGN EXCHANGEGLOBAL ECONOMYGOVERNMENT INTERVENTIONSGOVERNMENT REGULATIONINCOMEINCOME DISTRIBUTIONINEQUALITYINFORMAL FINANCEINFORMATION DISCLOSUREINFORMATIONAL ASYMMETRYINSURED DEPOSITSINTEREST RATESINTERNATIONAL BANKINTERNATIONAL TRADEINVESTINGINVESTMENT ALTERNATIVESINVESTMENT CHOICESINVESTMENT PORTFOLIOINVESTMENT PROJECTSINVESTMENT RISKIPOJOB CREATIONLABOR COSTSLACK OF CAPITALLEGAL PROTECTIONLEGAL REQUIREMENTSLEGAL SYSTEMLEGAL SYSTEMSLENDERLENDERSLENDING DECISIONLENDING DECISIONSLIMITED ACCESSLINES OF CREDITLIQUIDATIONLIQUIDITYLOANLOAN CONTRACTSLOAN DECISIONSLOAN OBLIGATIONSLOAN OFFICERSLOAN SIZELOCAL BANKLOCAL BANKSLOCAL MARKETMARKET COMPETITIONMARKET CONDITIONSMARKET ECONOMYMARKET LIQUIDITYMARKET MECHANISMMARKET PRICESMARKET SHAREMARKET STRUCTUREMARKET VALUEMARKETINGMARKETING STRATEGIESMICRO STRUCTUREMULTINATIONALNATURAL RESOURCESNEW BUSINESSOIL PRICEOPEN MARKETPHYSICAL ASSETSPOLITICAL ECONOMYPORTFOLIO INVESTMENTSPRIVATE EQUITYPRIVATE PROPERTYPROFITABILITYPROTECTION OF INVESTORSREAL SECTORREGIONAL BANKSRENTSRESOURCE ALLOCATIONRETURNRETURNSRETURNS TO BORROWERSRISK DIVERSIFICATIONRISK MANAGEMENTRISK MANAGEMENT SERVICESRISK MANAGEMENT TOOLSRISK SHARINGSAVINGSSHAREHOLDERSHAREHOLDERSSHORT-TERM FINANCINGSMALL BANKSMALL BANKSSMALL BORROWERSSMALL BUSINESSSMALL BUSINESS FINANCESMALL BUSINESS LENDINGSMALL BUSINESSESSMALL FIRM FINANCESMALL LOANSSMALLER FIRMSSOCIAL DEVELOPMENTSTART-UPSSTOCK EXCHANGESTOCK MARKETSTOCK MARKETSSTOCKSSYSTEMIC RISKTRANSACTIONTRANSACTION COSTTRANSACTION COSTSUNEMPLOYMENTVALUABLEVENTURE CAPITALVENTURE CAPITAL FIRMSVENTURE CAPITALISTSWorld Bank10.1596/1813-9450-5038