Financing Firms in India

The authors examine the legal and business environments, financing channels, and governance mechanisms of various types of firms in India and compare them to those from other countries. Despite its English commonlaw origin, strong legal protection provided by the law, and a democratic government, co...

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Main Authors:	Allen, Franklin, Chakrabarti, Rajesh, De, Sankar, Qian, Jun, Qian, Meijun
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING SYSTEMS AVERAGE LEVEL BALANCE OF PAYMENTS BANK DEPOSITS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BARGAINING POWER BORROWING BROKERS BUREAUCRACY BUSINESS ENTERPRISES BUSINESS ENVIRONMENT BUSINESS OPERATIONS CAPITAL MARKETS CAPITALIZATION CAUSAL IMPACT CIVIL-LAW SYSTEMS COMMERCIAL BANKS COMMON STOCK COMMON-LAW COUNTRIES COMMON-LAW SYSTEM COMMON-LAW SYSTEMS COMPANIES ACT COMPANY CONGLOMERATES CONTROLLING SHAREHOLDER CORPORATE GOVERNANCE CORPORATE GOVERNANCE MECHANISMS CORPORATE GOVERNANCE SYSTEM CORPORATE GROWTH CORPORATE LAWS CORPORATE SECTOR CORPORATIONS CORRUPTION DEBT DEMOCRACY DEPOSITS DEREGULATION DIRECT INVESTMENT DISCLOSURE REQUIREMENTS DIVIDEND POLICIES ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPLOYMENT ENTREPRENEURS EQUITY CAPITAL EQUITY MARKETS FACE VALUE FINANCIAL ASSETS FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SYSTEMS FIRMS FIXED ASSET FOREIGN BANKS FOREIGN DEBT FOREIGN DIRECT INVESTMENT GLOBALIZATION GOVERNMENT INTERVENTION GROWTH RATE INDUSTRIAL COMPANIES INSTITUTIONAL DEVELOPMENT INTEREST RATES INVESTOR PROTECTION LAWS LAWYERS LEGAL ORIGIN LEGAL PROTECTION LENDERS LICENSING LISTED COMPANIES MEDIUM ENTERPRISES MINORITY INVESTOR MINORITY INVESTOR PROTECTION OFFERINGS OVERHEAD COSTS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE ENTERPRISE PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PROTECTION OF INVESTORS PROTECTION OF MINORITY SHAREHOLDERS PUBLIC COMPANIES PUBLIC INSTITUTIONS PURCHASING POWER PURCHASING POWER PARITY REGULATORY AUTHORITIES RESERVE BANK OF INDIA RESOURCE ALLOCATION RETAINED EARNINGS RULE OF LAW SHARE CAPITAL SHAREHOLDER RIGHTS SHAREHOLDERS SMALL ENTERPRISES SMALL FIRMS SME SME SECTOR SOCIETY STATE ENTERPRISES STATE OWNED BANKS STOCK CORPORATIONS STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCK OWNERSHIP STOCK PRICES STOCKS TAX EVASION TAX RATES TERM FINANCE TRANSPARENCY UNLISTED COMPANIES
Online Access:	http://documents.worldbank.org/curated/en/2006/08/6951128/financing-firms-india http://hdl.handle.net/10986/8369

id	okr-10986-8369
recordtype	oai_dc
spelling	okr-10986-83692021-04-23T14:02:41Z Financing Firms in India Allen, Franklin Chakrabarti, Rajesh De, Sankar Qian, Jun Qian, Meijun ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING SYSTEMS AVERAGE LEVEL BALANCE OF PAYMENTS BANK DEPOSITS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BARGAINING POWER BORROWING BROKERS BUREAUCRACY BUSINESS ENTERPRISES BUSINESS ENVIRONMENT BUSINESS OPERATIONS CAPITAL MARKETS CAPITALIZATION CAUSAL IMPACT CIVIL-LAW SYSTEMS COMMERCIAL BANKS COMMON STOCK COMMON-LAW COUNTRIES COMMON-LAW SYSTEM COMMON-LAW SYSTEMS COMPANIES ACT COMPANY CONGLOMERATES CONTROLLING SHAREHOLDER CORPORATE GOVERNANCE CORPORATE GOVERNANCE MECHANISMS CORPORATE GOVERNANCE SYSTEM CORPORATE GROWTH CORPORATE LAWS CORPORATE SECTOR CORPORATIONS CORRUPTION DEBT DEMOCRACY DEPOSITS DEREGULATION DIRECT INVESTMENT DISCLOSURE REQUIREMENTS DIVIDEND POLICIES ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPLOYMENT ENTREPRENEURS EQUITY CAPITAL EQUITY MARKETS FACE VALUE FINANCIAL ASSETS FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SYSTEMS FIRMS FIXED ASSET FOREIGN BANKS FOREIGN DEBT FOREIGN DIRECT INVESTMENT GLOBALIZATION GOVERNMENT INTERVENTION GROWTH RATE INDUSTRIAL COMPANIES INSTITUTIONAL DEVELOPMENT INTEREST RATES INVESTOR PROTECTION LAWS LAWYERS LEGAL ORIGIN LEGAL PROTECTION LENDERS LICENSING LISTED COMPANIES MEDIUM ENTERPRISES MINORITY INVESTOR MINORITY INVESTOR PROTECTION OFFERINGS OVERHEAD COSTS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE ENTERPRISE PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PROTECTION OF INVESTORS PROTECTION OF MINORITY SHAREHOLDERS PUBLIC COMPANIES PUBLIC INSTITUTIONS PURCHASING POWER PURCHASING POWER PARITY REGULATORY AUTHORITIES RESERVE BANK OF INDIA RESOURCE ALLOCATION RETAINED EARNINGS RULE OF LAW SHARE CAPITAL SHAREHOLDER RIGHTS SHAREHOLDERS SMALL ENTERPRISES SMALL FIRMS SME SME SECTOR SOCIETY STATE ENTERPRISES STATE OWNED BANKS STOCK CORPORATIONS STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCK OWNERSHIP STOCK PRICES STOCKS TAX EVASION TAX RATES TERM FINANCE TRANSPARENCY UNLISTED COMPANIES The authors examine the legal and business environments, financing channels, and governance mechanisms of various types of firms in India and compare them to those from other countries. Despite its English commonlaw origin, strong legal protection provided by the law, and a democratic government, corruption within India's legal system and government significantly weakens investor protection in practice. External financing of firms has been dominated by nonmarket sources of financing, while the characteristics of listed firms are similar to those from countries with weak investor protection. The evidence, including results based on a survey of small and medium-scale private firms, shows that alternative financing channels provide the most important source of funds. The authors also find that informal governance mechanisms, such as those based on reputation, trust, and relationships are more important than formal mechanisms (such as courts) in resolving disputes, overcoming corruption, and supporting growth. 2012-06-18T21:29:51Z 2012-06-18T21:29:51Z 2006-08 http://documents.worldbank.org/curated/en/2006/08/6951128/financing-firms-india http://hdl.handle.net/10986/8369 English Policy Research Working Paper; No. 3975 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING SYSTEMS AVERAGE LEVEL BALANCE OF PAYMENTS BANK DEPOSITS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BARGAINING POWER BORROWING BROKERS BUREAUCRACY BUSINESS ENTERPRISES BUSINESS ENVIRONMENT BUSINESS OPERATIONS CAPITAL MARKETS CAPITALIZATION CAUSAL IMPACT CIVIL-LAW SYSTEMS COMMERCIAL BANKS COMMON STOCK COMMON-LAW COUNTRIES COMMON-LAW SYSTEM COMMON-LAW SYSTEMS COMPANIES ACT COMPANY CONGLOMERATES CONTROLLING SHAREHOLDER CORPORATE GOVERNANCE CORPORATE GOVERNANCE MECHANISMS CORPORATE GOVERNANCE SYSTEM CORPORATE GROWTH CORPORATE LAWS CORPORATE SECTOR CORPORATIONS CORRUPTION DEBT DEMOCRACY DEPOSITS DEREGULATION DIRECT INVESTMENT DISCLOSURE REQUIREMENTS DIVIDEND POLICIES ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPLOYMENT ENTREPRENEURS EQUITY CAPITAL EQUITY MARKETS FACE VALUE FINANCIAL ASSETS FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SYSTEMS FIRMS FIXED ASSET FOREIGN BANKS FOREIGN DEBT FOREIGN DIRECT INVESTMENT GLOBALIZATION GOVERNMENT INTERVENTION GROWTH RATE INDUSTRIAL COMPANIES INSTITUTIONAL DEVELOPMENT INTEREST RATES INVESTOR PROTECTION LAWS LAWYERS LEGAL ORIGIN LEGAL PROTECTION LENDERS LICENSING LISTED COMPANIES MEDIUM ENTERPRISES MINORITY INVESTOR MINORITY INVESTOR PROTECTION OFFERINGS OVERHEAD COSTS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE ENTERPRISE PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PROTECTION OF INVESTORS PROTECTION OF MINORITY SHAREHOLDERS PUBLIC COMPANIES PUBLIC INSTITUTIONS PURCHASING POWER PURCHASING POWER PARITY REGULATORY AUTHORITIES RESERVE BANK OF INDIA RESOURCE ALLOCATION RETAINED EARNINGS RULE OF LAW SHARE CAPITAL SHAREHOLDER RIGHTS SHAREHOLDERS SMALL ENTERPRISES SMALL FIRMS SME SME SECTOR SOCIETY STATE ENTERPRISES STATE OWNED BANKS STOCK CORPORATIONS STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCK OWNERSHIP STOCK PRICES STOCKS TAX EVASION TAX RATES TERM FINANCE TRANSPARENCY UNLISTED COMPANIES
spellingShingle	ACCOUNTING ACCOUNTING PRACTICES ACCOUNTING SYSTEMS AVERAGE LEVEL BALANCE OF PAYMENTS BANK DEPOSITS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BARGAINING POWER BORROWING BROKERS BUREAUCRACY BUSINESS ENTERPRISES BUSINESS ENVIRONMENT BUSINESS OPERATIONS CAPITAL MARKETS CAPITALIZATION CAUSAL IMPACT CIVIL-LAW SYSTEMS COMMERCIAL BANKS COMMON STOCK COMMON-LAW COUNTRIES COMMON-LAW SYSTEM COMMON-LAW SYSTEMS COMPANIES ACT COMPANY CONGLOMERATES CONTROLLING SHAREHOLDER CORPORATE GOVERNANCE CORPORATE GOVERNANCE MECHANISMS CORPORATE GOVERNANCE SYSTEM CORPORATE GROWTH CORPORATE LAWS CORPORATE SECTOR CORPORATIONS CORRUPTION DEBT DEMOCRACY DEPOSITS DEREGULATION DIRECT INVESTMENT DISCLOSURE REQUIREMENTS DIVIDEND POLICIES ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPLOYMENT ENTREPRENEURS EQUITY CAPITAL EQUITY MARKETS FACE VALUE FINANCIAL ASSETS FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SYSTEMS FIRMS FIXED ASSET FOREIGN BANKS FOREIGN DEBT FOREIGN DIRECT INVESTMENT GLOBALIZATION GOVERNMENT INTERVENTION GROWTH RATE INDUSTRIAL COMPANIES INSTITUTIONAL DEVELOPMENT INTEREST RATES INVESTOR PROTECTION LAWS LAWYERS LEGAL ORIGIN LEGAL PROTECTION LENDERS LICENSING LISTED COMPANIES MEDIUM ENTERPRISES MINORITY INVESTOR MINORITY INVESTOR PROTECTION OFFERINGS OVERHEAD COSTS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE ENTERPRISE PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PROTECTION OF INVESTORS PROTECTION OF MINORITY SHAREHOLDERS PUBLIC COMPANIES PUBLIC INSTITUTIONS PURCHASING POWER PURCHASING POWER PARITY REGULATORY AUTHORITIES RESERVE BANK OF INDIA RESOURCE ALLOCATION RETAINED EARNINGS RULE OF LAW SHARE CAPITAL SHAREHOLDER RIGHTS SHAREHOLDERS SMALL ENTERPRISES SMALL FIRMS SME SME SECTOR SOCIETY STATE ENTERPRISES STATE OWNED BANKS STOCK CORPORATIONS STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCK OWNERSHIP STOCK PRICES STOCKS TAX EVASION TAX RATES TERM FINANCE TRANSPARENCY UNLISTED COMPANIES Allen, Franklin Chakrabarti, Rajesh De, Sankar Qian, Jun Qian, Meijun Financing Firms in India
geographic_facet	South Asia India
relation	Policy Research Working Paper; No. 3975
description	The authors examine the legal and business environments, financing channels, and governance mechanisms of various types of firms in India and compare them to those from other countries. Despite its English commonlaw origin, strong legal protection provided by the law, and a democratic government, corruption within India's legal system and government significantly weakens investor protection in practice. External financing of firms has been dominated by nonmarket sources of financing, while the characteristics of listed firms are similar to those from countries with weak investor protection. The evidence, including results based on a survey of small and medium-scale private firms, shows that alternative financing channels provide the most important source of funds. The authors also find that informal governance mechanisms, such as those based on reputation, trust, and relationships are more important than formal mechanisms (such as courts) in resolving disputes, overcoming corruption, and supporting growth.
format	Publications & Research :: Policy Research Working Paper
author	Allen, Franklin Chakrabarti, Rajesh De, Sankar Qian, Jun Qian, Meijun
author_facet	Allen, Franklin Chakrabarti, Rajesh De, Sankar Qian, Jun Qian, Meijun
author_sort	Allen, Franklin
title	Financing Firms in India
title_short	Financing Firms in India
title_full	Financing Firms in India
title_fullStr	Financing Firms in India
title_full_unstemmed	Financing Firms in India
title_sort	financing firms in india
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/08/6951128/financing-firms-india http://hdl.handle.net/10986/8369
_version_	1764406332659597312

Financing Firms in India

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