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Law and Firms' Access to Finance

Author

Listed:
  • Thorsten Beck
  • Asli Demirguc-Kunt
  • Ross Levine

Abstract

This paper contributes to the literature on how a country's legal origin influences the operation of its financial system by using firm-level survey data on the obstacles that firms face in raising external finance. The paper assesses two channels through which legal origin may influence the financial system. It finds that the adaptability of a country's legal system is more important for explaining the obstacles that firms face in accessing external finance than the political independence of the judiciary.

Suggested Citation

  • Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2004. "Law and Firms' Access to Finance," NBER Working Papers 10687, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10687
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • G3 - Financial Economics - - Corporate Finance and Governance

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