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198
Economic Consequences of Legal Origins”,
- Journal of Economic Literature,
, 2008
"... Journal of Economic ..."
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Politicians and Banks: Political Influences on Government-Owned Banks in Emerging Markets
- Journal of Financial Economics, LXXVII
"... Michigan for many helpful comments. Craig Brown provided outstanding research assistance. ..."
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Cited by 114 (2 self)
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Michigan for many helpful comments. Craig Brown provided outstanding research assistance.
Credit Constraints as a Barrier to the Entry and Post-Entry Growth of Firms: Lessons from Firm -Level Cross Country Panel Data.” Mimeo
, 2006
"... Advanced market economies are characterized by a continuous process of creative destruction. Market forces and technological developments play a major role in shaping this process, but institutional and policy settings also influence firms ’ decision to enter, to expand if successful and to exit if ..."
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Cited by 89 (8 self)
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Advanced market economies are characterized by a continuous process of creative destruction. Market forces and technological developments play a major role in shaping this process, but institutional and policy settings also influence firms ’ decision to enter, to expand if successful and to exit if competition becomes unbearable. In this paper, we focus on the effects of financial development on the entry of new firms and the expansion of successful new businesses. Drawing from harmonized firm-level data for 16 industrialized and emerging economies, we find that access to finance matters most for the entry of small firms and in sectors that are more dependent upon external finance. This finding is robust to controlling for other potential entry barriers (labor market regulations and entry regulations). On the other hand, financial development has either no effect or a negative effect on entry by large firms. Access to finance also helps new firms expand if successful. Both private credit and stock market capitalization are important for promoting entry and post entry growth of firms. Altogether, these results suggest that, despite significant progress over the past decade, many countries, including those in Continental Europe, should improve their financial markets so as to get the most out of creative destruction, by encouraging the entry of new (especially small) firms and the post-entry growth of successful young businesses.
Financial reporting incentives for conservative accounting: The influence of legal and political institutions
- Journal of Accounting and Economics
, 2006
"... Business of the University of Chicago for financial support. Financial Reporting Incentives for Conservative Accounting: ..."
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Cited by 84 (5 self)
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Business of the University of Chicago for financial support. Financial Reporting Incentives for Conservative Accounting:
Cross-country empirical studies of systemic bank distress: a survey
- National Institute Economic Review
, 2005
"... 2005 This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published t ..."
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Cited by 77 (5 self)
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2005 This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. A rapidly growing empirical literature is studying the causes and consequences of bank fragility in present-day economies. The paper reviews the two basic methodologies adopted in cross-country empirical studies—the signals approach and the multivariate probability model—and their application to studying the determinants of banking crises. The use of these models to provide early warnings for crises is also reviewed, as are studies of the economic effects of banking crises and of the policies to forestall them. The paper concludes by identifying directions for future research.
The New Comparative Economics
, 2003
"... In recent years, comparative economics experienced a revival, with a new focus on comparing capitalist economies. The theme of the new research is that institutions exert a profound influence on economic development. We argue that, to understand capitalist institutions, one needs to understand th ..."
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Cited by 76 (0 self)
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In recent years, comparative economics experienced a revival, with a new focus on comparing capitalist economies. The theme of the new research is that institutions exert a profound influence on economic development. We argue that, to understand capitalist institutions, one needs to understand the basic tradeoff between the costs of disorder and those of dictatorship. We then apply this logic to study the structure of efficient institutions, the consequences of colonial transplantation, and the politics of institutional choice.
Further evidence on the link between finance and growth: An international analysis of community banking and economic performance
- Journal of Financial Services Research
, 2004
"... The authors thank our conference discussants, Phil Strahan and Giovanni Dell’Ariccia, the editors Bob DeYoung, ..."
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Cited by 54 (10 self)
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The authors thank our conference discussants, Phil Strahan and Giovanni Dell’Ariccia, the editors Bob DeYoung,
1 R2 Around the World: New Theory and New Tests
, 2005
"... Morck, Yeung and Yu (2000) show that R2 and other measures of stock market synchronicity are higher in countries with less developed financial systems and poorer corporate governance. We develop a model that explains these results and generates additional testable hypotheses. The model shows how con ..."
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Cited by 52 (1 self)
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Morck, Yeung and Yu (2000) show that R2 and other measures of stock market synchronicity are higher in countries with less developed financial systems and poorer corporate governance. We develop a model that explains these results and generates additional testable hypotheses. The model shows how control rights and information affect the division of risk bearing between inside managers and outside investors. Insiders capture part of the firm’s operating cash flows. The limits to capture are based on outside investors ’ perception of the value of the firm. The firm is not completely transparent, however. Lack of transparency shifts firm-specific risk to insiders and reduces the amount of firm-specific risk absorbed by outside investors. Our model also predicts that “opaque ” stocks are more likely to crash, that is, to deliver large negative returns. Crashes occur when insiders have to absorb too much firm-specific bad news and decide to give up. We test these predictions using stock returns from 40 stock markets from 1990 to 2001. We find strong positive relations between R2 and several measures of opaqueness. These measures also
