The Effect of Institutions on the External Financing of The Brazilian Firms

Revista Brasileira de Finanças

关键词: external financing;    institutional development;   

DOI  :  

来源: DOAJ

【 摘 要 】

Based on an analysis across Brazilian states, this article investigates whether the level of institutional development affects the pattern of external financing of firms. The analysis is based on a unique dataset stratified across firms from 10 to 10,500 employees (of which 71.9 percent are micro and small firms), 13 Brazilian states and 9 industries. Our main results indicate that lack institutional development – measured through corruption and efficiency of the judicial system and financial development – makes the use of bank credit and formal sources less frequent. Moreover, this effect seems to be stronger for small firms.

【 授权许可】

Unknown