Financing Patterns around the World : The Role of Institutions
Using a firm-level survey database covering 48 countries, the authors investigate whether differences in financial and legal development affect the way firms finance their investments. The results indicate that external financing of investments is...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2002/10/2038228/financing-patterns-around-world-role-institutions http://hdl.handle.net/10986/19214 |
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okr-10986-192142021-04-23T14:03:42Z Financing Patterns around the World : The Role of Institutions Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav FINANCIAL INSTITUTIONS FINANCIAL DEVELOPMENT SMALL & MEDIUM SCALE ENTERPRISES EXTERNAL FINANCE DEBT FINANCING EQUITY FINANCE SUPPLIERS' CREDITS LEASING ARRANGEMENTS LEGAL FRAMEWORK COMMON LAW CIVIL LAW FINANCIAL SYSTEMS FIRM SIZE ACCESS TO CREDIT ACCESS TO FINANCING ADVERSE SELECTION ADVERSE SELECTION COSTS BANK LOANS BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BENCHMARK CAPITAL MARKETS CAPITALIZATION CITIZENS COMMERCIAL BANKS COMPARATIVE ADVANTAGE CORPORATE FINANCE CORPORATE GOVERNANCE COUNTRY COMPARISONS COURT SYSTEM DEBT DEBT FINANCING DEVELOPMENT BANKS EMPLOYMENT EQUITY MARKETS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL PLANNING FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING CONSTRAINTS FINANCING SOURCES FOREIGN BANKS GDP GDP PER CAPITA GROWTH RATE INFLATION INFLATION RATE INSTITUTIONAL DEVELOPMENT INSTITUTIONAL VARIABLES INTERNATIONAL FINANCIAL MARKETS LAWS LEASING LEGAL INSTITUTIONS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LESS DEVELOPED COUNTRIES LOCAL AUTHORITIES MARGINAL COSTS PER CAPITA INCOME POLITICAL INSTITUTIONS PROPERTY RIGHTS PUBLIC SECTOR RETAINED EARNINGS TRANSITION ECONOMIES ACCESS TO CREDIT ACCESS TO FINANCING Using a firm-level survey database covering 48 countries, the authors investigate whether differences in financial and legal development affect the way firms finance their investments. The results indicate that external financing of investments is not a function of institutions, although the form of external finance is. The authors identify two explanations for this. First, legal 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 with small firms. The results also indicate that these firms are more likely to use external finance in more developed financial systems, particularly debt and equity finance. The authors also find evidence consistent with the pecking order theory in financially developed countries, particularly for large firms. 2014-08-01T19:08:30Z 2014-08-01T19:08:30Z 2002-10 http://documents.worldbank.org/curated/en/2002/10/2038228/financing-patterns-around-world-role-institutions http://hdl.handle.net/10986/19214 English en_US Policy Research Working Paper;No. 2905 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FINANCIAL INSTITUTIONS FINANCIAL DEVELOPMENT SMALL & MEDIUM SCALE ENTERPRISES EXTERNAL FINANCE DEBT FINANCING EQUITY FINANCE SUPPLIERS' CREDITS LEASING ARRANGEMENTS LEGAL FRAMEWORK COMMON LAW CIVIL LAW FINANCIAL SYSTEMS FIRM SIZE ACCESS TO CREDIT ACCESS TO FINANCING ADVERSE SELECTION ADVERSE SELECTION COSTS BANK LOANS BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BENCHMARK CAPITAL MARKETS CAPITALIZATION CITIZENS COMMERCIAL BANKS COMPARATIVE ADVANTAGE CORPORATE FINANCE CORPORATE GOVERNANCE COUNTRY COMPARISONS COURT SYSTEM DEBT DEBT FINANCING DEVELOPMENT BANKS EMPLOYMENT EQUITY MARKETS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL PLANNING FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING CONSTRAINTS FINANCING SOURCES FOREIGN BANKS GDP GDP PER CAPITA GROWTH RATE INFLATION INFLATION RATE INSTITUTIONAL DEVELOPMENT INSTITUTIONAL VARIABLES INTERNATIONAL FINANCIAL MARKETS LAWS LEASING LEGAL INSTITUTIONS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LESS DEVELOPED COUNTRIES LOCAL AUTHORITIES MARGINAL COSTS PER CAPITA INCOME POLITICAL INSTITUTIONS PROPERTY RIGHTS PUBLIC SECTOR RETAINED EARNINGS TRANSITION ECONOMIES ACCESS TO CREDIT ACCESS TO FINANCING |
| spellingShingle |
FINANCIAL INSTITUTIONS FINANCIAL DEVELOPMENT SMALL & MEDIUM SCALE ENTERPRISES EXTERNAL FINANCE DEBT FINANCING EQUITY FINANCE SUPPLIERS' CREDITS LEASING ARRANGEMENTS LEGAL FRAMEWORK COMMON LAW CIVIL LAW FINANCIAL SYSTEMS FIRM SIZE ACCESS TO CREDIT ACCESS TO FINANCING ADVERSE SELECTION ADVERSE SELECTION COSTS BANK LOANS BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BENCHMARK CAPITAL MARKETS CAPITALIZATION CITIZENS COMMERCIAL BANKS COMPARATIVE ADVANTAGE CORPORATE FINANCE CORPORATE GOVERNANCE COUNTRY COMPARISONS COURT SYSTEM DEBT DEBT FINANCING DEVELOPMENT BANKS EMPLOYMENT EQUITY MARKETS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL PLANNING FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING CONSTRAINTS FINANCING SOURCES FOREIGN BANKS GDP GDP PER CAPITA GROWTH RATE INFLATION INFLATION RATE INSTITUTIONAL DEVELOPMENT INSTITUTIONAL VARIABLES INTERNATIONAL FINANCIAL MARKETS LAWS LEASING LEGAL INSTITUTIONS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LESS DEVELOPED COUNTRIES LOCAL AUTHORITIES MARGINAL COSTS PER CAPITA INCOME POLITICAL INSTITUTIONS PROPERTY RIGHTS PUBLIC SECTOR RETAINED EARNINGS TRANSITION ECONOMIES ACCESS TO CREDIT ACCESS TO FINANCING Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav Financing Patterns around the World : The Role of Institutions |
| relation |
Policy Research Working Paper;No. 2905 |
| description |
Using a firm-level survey database
covering 48 countries, the authors investigate whether
differences in financial and legal development affect the
way firms finance their investments. The results indicate
that external financing of investments is not a function of
institutions, although the form of external finance is. The
authors identify two explanations for this. First, legal 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 with small firms. The results also indicate that
these firms are more likely to use external finance in more
developed financial systems, particularly debt and equity
finance. The authors also find evidence consistent with the
pecking order theory in financially developed countries,
particularly for large firms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav |
| author_facet |
Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav |
| author_sort |
Beck, Thorsten |
| title |
Financing Patterns around the World : The Role of Institutions |
| title_short |
Financing Patterns around the World : The Role of Institutions |
| title_full |
Financing Patterns around the World : The Role of Institutions |
| title_fullStr |
Financing Patterns around the World : The Role of Institutions |
| title_full_unstemmed |
Financing Patterns around the World : The Role of Institutions |
| title_sort |
financing patterns around the world : the role of institutions |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2002/10/2038228/financing-patterns-around-world-role-institutions http://hdl.handle.net/10986/19214 |
| _version_ |
1764439374797209600 |