IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Legal environment, capital structure and firm growth: international evidence from industry data

Listed author(s):
  • Utrero González, Natalia

This paper investigates the effects that economic regulations have on firm growth. There is substantial evidence of a positive relationship between the level of financial development and economic growth. Little is known, about the role played by the legal structure affecting firm decision making on growth. We analyse banking regulation, disclosure requirements, company and bankruptcy laws, accountancy norms and rules about market competition. We find evidence that the efficiency of the legal environment affects significantly firm growth. We show that this result is unlikely to be driven by omitted variables. We also show that institutional framework impacts the influence of financial development on growth. We find that comprehensive shareholder and creditor protection affects more positively those sectors which are more externally financed; however disclosure requirements hinder the results of those industrial sectors that are more externally financed.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Universidad Carlos III de Madrid. Departamento de Economía de la Empresa in its series DEE - Working Papers. Business Economics. WB with number wb021913.

in new window

Date of creation: May 2002
Handle: RePEc:cte:wbrepe:wb021913
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cte:wbrepe:wb021913. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Poveda)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.