Which Firms Benefit More from Financial Development?
AbstractWe test whether more developed financial systems are better at tackling asymmetric information proxied by firm age and size. Comparing the growth effect of financial development (FD) across firms of different type, we find that FD disproportionately fosters the growth of young companies, while there is relatively little evidence of differences in the effect across firms of different size. The disproportionate gains from FD for youngest firms are concentrated among firms with lower shares of equity capital on total assets as these firms are in more need of external financing.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6392.
Date of creation: Jul 2007
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Other versions of this item:
- Jan Bena & Stepan Jurajda, 2007. "Which Firms Benefit More from Financial Development?," CERGE-EI Working Papers wp330, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-27 (All new papers)
- NEP-BEC-2007-07-27 (Business Economics)
- NEP-CFN-2007-07-27 (Corporate Finance)
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- Jan Bena & Peter Ondko, 2009. "Financial Development and Allocation of External Finance," CERGE-EI Working Papers wp398, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Jan Bena, 2008.
"The Effect of Credit Rationing on the Shape of the Competition-Innovation Relationship,"
CERGE-EI Working Papers
wp377, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Jan Bena, 2009. "The Effect of Credit Rationing on the Shape of the Competition-Innovation Relationship," FMG Discussion Papers dp629, Financial Markets Group.
- Dick Wensveen, 2008. "Notes And Communications," De Economist, Springer, vol. 156(3), pages 307-338, September.
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