Law and Firms' Access to Finance"This paper contributes to the literature on how a country's legal origin influences the operation of its financial system by using firm-level survey data on the obstacles that firms face in raising external finance. The paper assesses two channels through which legal origin may influence the financial system. It finds that the adaptability of a country's legal system is more important for explaining the obstacles that firms face in accessing external finance than the political independence of the judiciary"--NBER website |
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access to finance access to long-term adaptability channel Andrei Shleifer B₁ based on statutory Beck British Legal Origin Bureaucracy Bureaucracy bureaucracy Business Environment Survey Collateral Collateral Collateral collateral requirements Common Law competitors the firm Creditor Rights Djankov dummy variables enters significantly Environment Survey WBES financial development Financial Economics Financial Financial Financial financing obstacles firm-level firms face French Legal Origin GDP per capita indicates whether judgments Journal of Financial judicial independence judiciary Legal Adaptability legal formalism Legal Origin countries legal system adaptability legal system traits legal traditions Long-term Loans Long-term Long-term Long-term Luigi Zingales major obstacle moderate obstacle number of competitors Obstacle Obstacle Obstacle obstacles that firms ordered probit P-values Paperwork and Bureaucracy political channel Porta principles of equity requirements requirements requirements Ross Levine single proprietorship statutory law Supreme Court Judges Supreme Court Power Supreme Court Tenure tenure of Supreme Thorsten variable that takes variables that indicate World Business Environment zero otherwise