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 re...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100527085728 http://hdl.handle.net/10986/3808 |
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okr-10986-38082021-04-23T14:02:12Z The Impact of the Business Environment on Young Firm Financing Chavis, Larry W. Klapper, Leora F. Love, Inessa ACCESS TO BANK ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO FINANCING ACCESS TO FORMAL FINANCE ADVERSE SELECTION ASYMMETRIC INFORMATION AVAILABILITY OF BANK FINANCING AVAILABILITY OF CREDIT BANK CREDIT BANK FINANCING BANK POLICY BANKS BARRIERS TO GROWTH BORROWER BORROWING BRIBES CAPITAL STRUCTURE CHECKS COLLATERAL COMMERCIAL BORROWING CONTRACT ENFORCEMENT CORPORATE FINANCE CORPORATE FINANCING CORPORATE GOVERNANCE CORRUPTION CREDIT BUREAU CREDIT CARDS CREDIT CONTRACT CREDIT CONTRACTS CREDIT HISTORY CREDIT INFORMATION CREDIT SCORING CREDITOR CREDITOR RIGHTS CREDITORS CREDITWORTHINESS DEBT DEBT CAPACITY DEBT RECOVERY DEPENDENT DEVELOPING COUNTRIES DOMESTIC BANK EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT ENTERPRISE PERFORMANCE ENTREPRENEUR ENTREPRENEURIAL FINANCE ENTREPRENEURS ENTREPRENEURSHIP EQUITY CAPITAL EQUITY FINANCE EQUITY RATIO EXCLUSION EXPORTER EXPORTERS EXTERNAL FINANCING FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL COSTS FINANCIAL DEVELOPMENT FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL SYSTEMS FINANCING CONSTRAINTS FINANCING NEEDS FINANCING SOURCES FIRM FINANCING FIRM PERFORMANCE FOREIGN BANK FOREIGN BANKS FOREIGN OWNERSHIP FORMAL BANK FORMAL CREDIT GREATER ACCESS GROWTH OPPORTUNITIES INCOME GROUP INCOME GROUPS INCOME LEVEL INFORMAL CREDIT INFORMAL FINANCE INFORMAL FINANCING INFORMAL LENDERS INFORMATION ASYMMETRY INFORMATION INFRASTRUCTURE INFORMATION INFRASTRUCTURES INSTITUTIONAL ENVIRONMENT INTEREST RATE INTEREST RATES INTERNAL FINANCING INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT OPPORTUNITIES LEGAL CONSTRAINTS LEGAL ENVIRONMENT LEGAL ENVIRONMENTS LEGAL SYSTEM LENDERS LENDING BEHAVIOR LIABILITY LINE OF CREDIT LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CHARACTERISTICS LOAN SIZE LOCAL BANKS MATURITY MORAL HAZARD NEW BUSINESS OVERDRAFT OVERDRAFT FACILITY PERSONAL CREDIT POLITICAL ECONOMY PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATIZATION PROFITABILITY PROPRIETORSHIP REGIONAL DUMMIES REPAYMENT RETAINED EARNINGS RETURN RISK MANAGEMENT RULE OF LAW SHAREHOLDER SMALL BUSINESSES SOURCES OF FINANCE START-UP TRADE CREDIT TRANSITION COUNTRIES UNLIMITED LIABILITY USE OF COLLATERAL VALUE OF COLLATERAL WORKING CAPITAL 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. 2012-03-19T18:40:11Z 2012-03-19T18:40:11Z 2010-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100527085728 http://hdl.handle.net/10986/3808 English Policy Research working paper ; no. WPS 5322 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO BANK ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO FINANCING ACCESS TO FORMAL FINANCE ADVERSE SELECTION ASYMMETRIC INFORMATION AVAILABILITY OF BANK FINANCING AVAILABILITY OF CREDIT BANK CREDIT BANK FINANCING BANK POLICY BANKS BARRIERS TO GROWTH BORROWER BORROWING BRIBES CAPITAL STRUCTURE CHECKS COLLATERAL COMMERCIAL BORROWING CONTRACT ENFORCEMENT CORPORATE FINANCE CORPORATE FINANCING CORPORATE GOVERNANCE CORRUPTION CREDIT BUREAU CREDIT CARDS CREDIT CONTRACT CREDIT CONTRACTS CREDIT HISTORY CREDIT INFORMATION CREDIT SCORING CREDITOR CREDITOR RIGHTS CREDITORS CREDITWORTHINESS DEBT DEBT CAPACITY DEBT RECOVERY DEPENDENT DEVELOPING COUNTRIES DOMESTIC BANK EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT ENTERPRISE PERFORMANCE ENTREPRENEUR ENTREPRENEURIAL FINANCE ENTREPRENEURS ENTREPRENEURSHIP EQUITY CAPITAL EQUITY FINANCE EQUITY RATIO EXCLUSION EXPORTER EXPORTERS EXTERNAL FINANCING FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL COSTS FINANCIAL DEVELOPMENT FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL SYSTEMS FINANCING CONSTRAINTS FINANCING NEEDS FINANCING SOURCES FIRM FINANCING FIRM PERFORMANCE FOREIGN BANK FOREIGN BANKS FOREIGN OWNERSHIP FORMAL BANK FORMAL CREDIT GREATER ACCESS GROWTH OPPORTUNITIES INCOME GROUP INCOME GROUPS INCOME LEVEL INFORMAL CREDIT INFORMAL FINANCE INFORMAL FINANCING INFORMAL LENDERS INFORMATION ASYMMETRY INFORMATION INFRASTRUCTURE INFORMATION INFRASTRUCTURES INSTITUTIONAL ENVIRONMENT INTEREST RATE INTEREST RATES INTERNAL FINANCING INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT OPPORTUNITIES LEGAL CONSTRAINTS LEGAL ENVIRONMENT LEGAL ENVIRONMENTS LEGAL SYSTEM LENDERS LENDING BEHAVIOR LIABILITY LINE OF CREDIT LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CHARACTERISTICS LOAN SIZE LOCAL BANKS MATURITY MORAL HAZARD NEW BUSINESS OVERDRAFT OVERDRAFT FACILITY PERSONAL CREDIT POLITICAL ECONOMY PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATIZATION PROFITABILITY PROPRIETORSHIP REGIONAL DUMMIES REPAYMENT RETAINED EARNINGS RETURN RISK MANAGEMENT RULE OF LAW SHAREHOLDER SMALL BUSINESSES SOURCES OF FINANCE START-UP TRADE CREDIT TRANSITION COUNTRIES UNLIMITED LIABILITY USE OF COLLATERAL VALUE OF COLLATERAL WORKING CAPITAL |
| spellingShingle |
ACCESS TO BANK ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO FINANCING ACCESS TO FORMAL FINANCE ADVERSE SELECTION ASYMMETRIC INFORMATION AVAILABILITY OF BANK FINANCING AVAILABILITY OF CREDIT BANK CREDIT BANK FINANCING BANK POLICY BANKS BARRIERS TO GROWTH BORROWER BORROWING BRIBES CAPITAL STRUCTURE CHECKS COLLATERAL COMMERCIAL BORROWING CONTRACT ENFORCEMENT CORPORATE FINANCE CORPORATE FINANCING CORPORATE GOVERNANCE CORRUPTION CREDIT BUREAU CREDIT CARDS CREDIT CONTRACT CREDIT CONTRACTS CREDIT HISTORY CREDIT INFORMATION CREDIT SCORING CREDITOR CREDITOR RIGHTS CREDITORS CREDITWORTHINESS DEBT DEBT CAPACITY DEBT RECOVERY DEPENDENT DEVELOPING COUNTRIES DOMESTIC BANK EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMPLOYMENT ENTERPRISE PERFORMANCE ENTREPRENEUR ENTREPRENEURIAL FINANCE ENTREPRENEURS ENTREPRENEURSHIP EQUITY CAPITAL EQUITY FINANCE EQUITY RATIO EXCLUSION EXPORTER EXPORTERS EXTERNAL FINANCING FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL COSTS FINANCIAL DEVELOPMENT FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL SYSTEMS FINANCING CONSTRAINTS FINANCING NEEDS FINANCING SOURCES FIRM FINANCING FIRM PERFORMANCE FOREIGN BANK FOREIGN BANKS FOREIGN OWNERSHIP FORMAL BANK FORMAL CREDIT GREATER ACCESS GROWTH OPPORTUNITIES INCOME GROUP INCOME GROUPS INCOME LEVEL INFORMAL CREDIT INFORMAL FINANCE INFORMAL FINANCING INFORMAL LENDERS INFORMATION ASYMMETRY INFORMATION INFRASTRUCTURE INFORMATION INFRASTRUCTURES INSTITUTIONAL ENVIRONMENT INTEREST RATE INTEREST RATES INTERNAL FINANCING INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT OPPORTUNITIES LEGAL CONSTRAINTS LEGAL ENVIRONMENT LEGAL ENVIRONMENTS LEGAL SYSTEM LENDERS LENDING BEHAVIOR LIABILITY LINE OF CREDIT LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LOAN CHARACTERISTICS LOAN SIZE LOCAL BANKS MATURITY MORAL HAZARD NEW BUSINESS OVERDRAFT OVERDRAFT FACILITY PERSONAL CREDIT POLITICAL ECONOMY PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATIZATION PROFITABILITY PROPRIETORSHIP REGIONAL DUMMIES REPAYMENT RETAINED EARNINGS RETURN RISK MANAGEMENT RULE OF LAW SHAREHOLDER SMALL BUSINESSES SOURCES OF FINANCE START-UP TRADE CREDIT TRANSITION COUNTRIES UNLIMITED LIABILITY USE OF COLLATERAL VALUE OF COLLATERAL WORKING CAPITAL Chavis, Larry W. Klapper, Leora F. Love, Inessa The Impact of the Business Environment on Young Firm Financing |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5322 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Chavis, Larry W. Klapper, Leora F. Love, Inessa |
| author_facet |
Chavis, Larry W. Klapper, Leora F. Love, Inessa |
| author_sort |
Chavis, Larry W. |
| title |
The Impact of the Business Environment on Young Firm Financing |
| title_short |
The Impact of the Business Environment on Young Firm Financing |
| title_full |
The Impact of the Business Environment on Young Firm Financing |
| title_fullStr |
The Impact of the Business Environment on Young Firm Financing |
| title_full_unstemmed |
The Impact of the Business Environment on Young Firm Financing |
| title_sort |
impact of the business environment on young firm financing |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100527085728 http://hdl.handle.net/10986/3808 |
| _version_ |
1764388453887246336 |