Financing Patterns Around the World : Are Small Firms Different?

Using a firm-level survey database covering 48 countries, we investigate how financial and institutional development affects financing of large and small firms. Our database is not limited to large firms but includes small and medium-size firms and data on a broad spectrum of financing sources, incl...

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Main Authors:	Beck, Thorsten, Demirguc-Kunt, Asli, Maksimovic, Vojislav
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Firm Performance: Size, Diversification, and Scope L250
Online Access:	http://hdl.handle.net/10986/5322

id	okr-10986-5322
recordtype	oai_dc
spelling	okr-10986-53222021-04-23T14:02:21Z Financing Patterns Around the World : Are Small Firms Different? Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Firm Performance: Size, Diversification, and Scope L250 Using a firm-level survey database covering 48 countries, we investigate how financial and institutional development affects financing of large and small firms. Our database is not limited to large firms but includes small and medium-size firms and data on a broad spectrum of financing sources, including leasing, supplier, development, and informal finance. Small firms and firms in countries with poor institutions use less external finance, especially bank finance. Protection of property rights increases external financing of small firms significantly more than of large firms, mainly due to its effect on bank finance. Small firms do not use disproportionately more leasing or trade finance compared with larger firms, so these financing sources do not compensate for lower access to bank financing of small firms. We also find that larger firms more easily expand external financing when they are constrained than small firms. Finally, we find suggestive evidence that the pecking order holds across countries. 2012-03-30T07:32:17Z 2012-03-30T07:32:17Z 2008 Journal Article Journal of Financial Economics 0304405X http://hdl.handle.net/10986/5322 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Firm Performance: Size, Diversification, and Scope L250
spellingShingle	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financing Policy Financial Risk and Risk Management Capital and Ownership Structure G320 Firm Performance: Size, Diversification, and Scope L250 Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav Financing Patterns Around the World : Are Small Firms Different?
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Using a firm-level survey database covering 48 countries, we investigate how financial and institutional development affects financing of large and small firms. Our database is not limited to large firms but includes small and medium-size firms and data on a broad spectrum of financing sources, including leasing, supplier, development, and informal finance. Small firms and firms in countries with poor institutions use less external finance, especially bank finance. Protection of property rights increases external financing of small firms significantly more than of large firms, mainly due to its effect on bank finance. Small firms do not use disproportionately more leasing or trade finance compared with larger firms, so these financing sources do not compensate for lower access to bank financing of small firms. We also find that larger firms more easily expand external financing when they are constrained than small firms. Finally, we find suggestive evidence that the pecking order holds across countries.
format	Journal Article
author	Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav
author_facet	Beck, Thorsten Demirguc-Kunt, Asli Maksimovic, Vojislav
author_sort	Beck, Thorsten
title	Financing Patterns Around the World : Are Small Firms Different?
title_short	Financing Patterns Around the World : Are Small Firms Different?
title_full	Financing Patterns Around the World : Are Small Firms Different?
title_fullStr	Financing Patterns Around the World : Are Small Firms Different?
title_full_unstemmed	Financing Patterns Around the World : Are Small Firms Different?
title_sort	financing patterns around the world : are small firms different?
publishDate	2012
url	http://hdl.handle.net/10986/5322
_version_	1764394638811070464

Financing Patterns Around the World : Are Small Firms Different?

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