The impact of the business environment on young firm financing
This paper uses a dataset of more than 70,000 firms in over 100 countries to systematically study the use of different financing sources for new and young firms, in comparison to mature firms. The authors find that in all countries younger firms rely less on bank financing and more on informal financing. However, they also find that younger firms use more bank finance in countries with stronger rule of law and better credit information, and that the reliance of young firms on informal finance decreases with the availability of credit information. Overall, the results suggest that improvements to the legal environment and availability of credit information are disproportionately beneficial for promoting access to formal finance by young firms.
|Date of creation:||01 May 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Elisabeth Müller & Volker Zimmermann, 2009. "The importance of equity finance for R&D activity," Small Business Economics, Springer, vol. 33(3), pages 303-318, October.
- repec:ner:tilbur:urn:nbn:nl:ui:12-3132806 is not listed on IDEAS
- Leora Klapper, 2006. "Entrepreneurship," World Bank Other Operational Studies 11174, The World Bank.
- Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
- Beck, T.H.L. & Demirgüc-Kunt, A. & Maksimovic, V., 2008.
"Financing patterns around the world : Are small firms different?,"
Other publications TiSEM
7078f1cc-51a6-4556-b193-d, School of Economics and Management.
- Beck, Thorsten & Demirgüç-Kunt, Asli & Maksimovic, Vojislav, 2008. "Financing patterns around the world: Are small firms different?," Journal of Financial Economics, Elsevier, vol. 89(3), pages 467-487, September.
- Ayyagari, Meghana & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2008.
"Formal versus informal finance : evidence from China,"
Policy Research Working Paper Series
4465, The World Bank.
- Meghana Ayyagari & Asli Demirgüç-Kunt & Vojislav Maksimovic, 2010. "Formal versus Informal Finance: Evidence from China," Review of Financial Studies, Society for Financial Studies, vol. 23(8), pages 3048-3097, August.
- Baldwin, John R. & Gellatly, Guy & Gaudreault, Valerie, 2002. "Financing Innovation in New Small Firms: New Evidence from Canada," Analytical Studies Branch Research Paper Series 2002190e, Statistics Canada, Analytical Studies Branch.
- Ross Levine, 2004.
"Finance and Growth: Theory and Evidence,"
NBER Working Papers
10766, National Bureau of Economic Research, Inc.
- repec:ner:tilbur:urn:nbn:nl:ui:12-3125505 is not listed on IDEAS
- Robert Carpenter & Laura Rondi, 2000.
"Italian Corporate Governance, Investment, and Finance,"
CERIS Working Paper
200014, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
- Robert Carpenter & Laura Rondi, 2000. "Italian Corporate Governance, Investment, and Finance," Empirica, Springer, vol. 27(4), pages 365-388, December.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5322. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.