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Financial Constraints, Quality of Institutions and Firm Size: What Do Perceptions Tell Us?

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  • Nurullah Gur

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Abstract

Using a unique firm-level data set for 27 Eurasian countries, we investigate whether perceptions of financial constraints, corruption and legal institutions affect firm size. Our results are consistent with Beck et al. (2006). We find that perceived financial constraints are the only factor having a negative and significant effect on firm size, while perceived corruption and perceived quality of legal institutions do not have statistically significant effects. Copyright Eurasia Business and Economics Society 2012

Suggested Citation

  • Nurullah Gur, 2012. "Financial Constraints, Quality of Institutions and Firm Size: What Do Perceptions Tell Us?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(2), pages 17-36, December.
  • Handle: RePEc:spr:eurase:v:2:y:2012:i:2:p:17-36 DOI: 10.14208/BF03353835
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    Cited by:

    1. Anabela Santos & Paulo Neto & Maria Manuel Serrano, 2016. "A long-term mortality analysis of subsidized firms in rural areas: an empirical study in the Portuguese Alentejo region," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, pages 125-151.
    2. Kose John & Joe Shangguan & Ravi Mateti, 2015. "Financing activities after accounting restatements: an examination of SEOs and PIPEs," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, pages 139-160.
    3. Marco Lau & Yongyang Su & Na Tan & Zhe Zhang, 2014. "Hedging China’s energy oil market risks," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 99-112, June.
    4. Trong Ngo & Andrew Mullineux & Anh Ly, 2014. "The impact of scale of operation on financial performance in microfinance," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, pages 177-198.
    5. Alessandro Zeli, 2014. "The financial distress indicators trend in Italy: an analysis of medium-size enterprises," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, pages 199-221.
    6. repec:spr:pharme:v:4:y:2014:i:1:p:99-112 is not listed on IDEAS

    More about this item

    Keywords

    Financial Constraints; Corruption; Quality of Legal Institutions; Business Environment; Firm Size; G30; G10; O16; K40;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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