Does Financial Liberalization Relax Financing Constraints on Firms?
Does Financial Liberalization Relax Financing Constraints on Firms?:

October 2000 - Financial liberalization reduces imperfections in financial markets by reducing the agency costs of financial leverage. Small firms gain most from liberalization, because the favoritism of preferential credit directed to large firms tends to disappear under liberalization. Laeven uses...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
1. Verfasser: Laeven, Luc (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Washington, D.C The World Bank 1999
Schlagworte:
Administrative Controls
Allocation Of Cred Banking Sector
Banks and Banking Reform
Barriers To Entry
Credit Programs
Currencies and Exchange Rates
Debt Markets
Deposits
Developing Countries
Directed Cred Emerging Economies
Economic Theory and Research
Emerging Markets
Finance and Financial Sector Development
Financial Intermediation
Financial Liberalization
Financial Literacy
Financial Market
Financial System
Household Savings
Informational Asymmetries
Interest
Interest Rate
Interest Rates
Investment
Investment and Investment Climate
Macroeconomics and Economic Growth
Non Bank Financial Institutions
Private Sector Development
Securities
Securities Markets
Online-Zugang:DE-522
DE-12
DE-521
DE-1102
DE-1046
DE-1047
DE-858
DE-Aug4
DE-573
DE-M347
DE-92
DE-1051
DE-898
DE-859
DE-860
DE-1049
DE-863
DE-862
DE-523
DE-2070s
DE-M352
DE-Re13
DE-70
DE-128
DE-22
DE-155
DE-150
DE-91
DE-384
DE-473
DE-19
DE-355
DE-703
DE-20
DE-706
DE-29
DE-739
Volltext
Zusammenfassung:October 2000 - Financial liberalization reduces imperfections in financial markets by reducing the agency costs of financial leverage. Small firms gain most from liberalization, because the favoritism of preferential credit directed to large firms tends to disappear under liberalization. Laeven uses panel data on 394 firms in 13 developing countries for the years 1988–98 to learn whether financial liberalization relaxes financing constraints on firms. He finds that liberalization affects small and large firms differently. Small firms are financially constrained before liberalization begins but become less so after liberalization. The financing constraints on large firms, however, are low both before and after liberalization. The initial difference between small and large firms disappears over time. Laeven hypothesizes that financial liberalization has little effect on the financing constraints of large firms because they have better access to preferential directed credit in the period before liberalization.Financial liberalization also reduces imperfections in financial markets, especially the asymmetric information costs of firms’ financial leverage. Countries that liberalize their financial sectors tend to see dramatic improvements in political climate as well. Successful financial liberalization seems to require both the political will and the ability to stop the preferential treatment of well-connected, usually large, firms. This paper—a product of the Financial Sector Strategy and Policy Department—is part of a larger effort in the department to study the benefits and risks of financial liberalization. The author may be contacted at llaeven@worldbank.org
Beschreibung:1 Online-Ressource (1 online resource (56 p.))
Login für die Nachverfolgung von Bestellungen und Vormerkungen
Volltext öffnen

Ähnliche Einträge