DMCA
FINANCING PATTERNS AROUND THE WORLD: THE ROLE OF INSTITUTIONS
| Citations: | 13 - 1 self |
BibTeX
@MISC{Beck_financingpatterns,
author = {Thorsten Beck and Asli Demirgüç-kunt and Vojislav Maksimovic},
title = {FINANCING PATTERNS AROUND THE WORLD: THE ROLE OF INSTITUTIONS},
year = {}
}
Share
 |
 |
 |
 |
||
OpenURL
Abstract
Using a firm-level survey database covering 48 countries, this paper investigates whether differences in financial and le gal development affect the way firms finance their investment. Our results indicate that external financing of investment is not a function of institutions, although the form of external finance is. We identify two explanations for this result. First, le gal and financial institutions affect different types of external finance in offsetting ways. Second, firm size is an important determinant of whether firms can have access to different types of external finance. Larger firms with financing needs are more likely to use external finance compared to small firms. Our results also indicate that these firms are more likely to use external finance in more developed financial systems, particularly debt and equity finance. Finally, we find evidence consistent with pecking order theory in financially developed countries, particularly for large firms. Keywords: Financial Development; Financing Patterns, Pecking Order, Small and Medium Enterprises JEL Classification: G30, G10, O16, K40 World Bank Policy Research Working Paper 2905, October 2002 The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at htt...
Keyphrases
external finance financing pattern role institution different type external financing way firm financial development equity finance important determinant developed country medium enterprise jel classification firm-level survey database large firm small firm order theory available online policy research working paper developed financial system financing need policy research working paper series executive director world bank le gal le gal development development issue financial institution firm size
