Chavis, Larry W.Klapper, Leora F.Love, Inessa2012-03-192012-03-192010-05-01https://hdl.handle.net/10986/3808This paper uses a dataset of more than 70,000 firms in over 100 countries to systematically study the use of different financing sources for new and young firms, in comparison to mature firms. The authors find that in all countries younger firms rely less on bank financing and more on informal financing. However, they also find that younger firms use more bank finance in countries with stronger rule of law and better credit information, and that the reliance of young firms on informal finance decreases with the availability of credit information. Overall, the results suggest that improvements to the legal environment and availability of credit information are disproportionately beneficial for promoting access to formal finance by young firms.CC BY 3.0 IGOACCESS TO BANKACCESS TO CREDITACCESS TO EXTERNAL FINANCEACCESS TO FINANCEACCESS TO FINANCINGACCESS TO FORMAL FINANCEADVERSE SELECTIONASYMMETRIC INFORMATIONAVAILABILITY OF BANK FINANCINGAVAILABILITY OF CREDITBANK CREDITBANK FINANCINGBANK POLICYBANKSBARRIERS TO GROWTHBORROWERBORROWINGBRIBESCAPITAL STRUCTURECHECKSCOLLATERALCOMMERCIAL BORROWINGCONTRACT ENFORCEMENTCORPORATE FINANCECORPORATE FINANCINGCORPORATE GOVERNANCECORRUPTIONCREDIT BUREAUCREDIT CARDSCREDIT CONTRACTCREDIT CONTRACTSCREDIT HISTORYCREDIT INFORMATIONCREDIT SCORINGCREDITORCREDITOR RIGHTSCREDITORSCREDITWORTHINESSDEBTDEBT CAPACITYDEBT RECOVERYDEPENDENTDEVELOPING COUNTRIESDOMESTIC BANKEARNINGSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMICSEMPLOYMENTENTERPRISE PERFORMANCEENTREPRENEURENTREPRENEURIAL FINANCEENTREPRENEURSENTREPRENEURSHIPEQUITY CAPITALEQUITY FINANCEEQUITY RATIOEXCLUSIONEXPORTEREXPORTERSEXTERNAL FINANCINGFINANCIAL CONSTRAINTSFINANCIAL CONTRACTSFINANCIAL COSTSFINANCIAL DEVELOPMENTFINANCIAL MARKETSFINANCIAL PRODUCTSFINANCIAL STATEMENTSFINANCIAL STUDIESFINANCIAL SYSTEMSFINANCING CONSTRAINTSFINANCING NEEDSFINANCING SOURCESFIRM FINANCINGFIRM PERFORMANCEFOREIGN BANKFOREIGN BANKSFOREIGN OWNERSHIPFORMAL BANKFORMAL CREDITGREATER ACCESSGROWTH OPPORTUNITIESINCOME GROUPINCOME GROUPSINCOME LEVELINFORMAL CREDITINFORMAL FINANCEINFORMAL FINANCINGINFORMAL LENDERSINFORMATION ASYMMETRYINFORMATION INFRASTRUCTUREINFORMATION INFRASTRUCTURESINSTITUTIONAL ENVIRONMENTINTEREST RATEINTEREST RATESINTERNAL FINANCINGINTERNAL FUNDSINTERNATIONAL BANKINVESTMENT FINANCINGINVESTMENT OPPORTUNITIESLEGAL CONSTRAINTSLEGAL ENVIRONMENTLEGAL ENVIRONMENTSLEGAL SYSTEMLENDERSLENDING BEHAVIORLIABILITYLINE OF CREDITLIQUIDITYLIQUIDITY CONSTRAINTSLOANLOAN CHARACTERISTICSLOAN SIZELOCAL BANKSMATURITYMORAL HAZARDNEW BUSINESSOVERDRAFTOVERDRAFT FACILITYPERSONAL CREDITPOLITICAL ECONOMYPRIVATE CREDITPRIVATE CREDIT BUREAUPRIVATIZATIONPROFITABILITYPROPRIETORSHIPREGIONAL DUMMIESREPAYMENTRETAINED EARNINGSRETURNRISK MANAGEMENTRULE OF LAWSHAREHOLDERSMALL BUSINESSESSOURCES OF FINANCESTART-UPTRADE CREDITTRANSITION COUNTRIESUNLIMITED LIABILITYUSE OF COLLATERALVALUE OF COLLATERALWORKING CAPITALWorld Bank10.1596/1813-9450-5322