Title of article
Firm dynamicsandfinancialdevelopment
Author/Authors
Cristina Arellano، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2012
Pages
17
From page
533
To page
549
Abstract
Usingcomprehensivefirm-leveldatasets,thispaperstudiestheimpactofcross-country
variationinfinancialmarketdevelopmentonfirms’financingchoicesandgrowth.
In lessfinanciallydevelopedeconomies,smallfirmsgrowfasterandhavelower
leveragethanlargefirms.Asfinancialdevelopmentimproves,thegrowthdifference
betweensmallandlargefirmsshrinks,whiletheleveragedifferencerises.Thepaper
then developsaquantitativemodelwherefinancialfrictionsdrivefirmgrowthanddebt
financingthroughtheavailabilityofcreditanddefaultrisk.Themodelexplainsthe
observedcross-countryvariationsinfirmsize,leverageandgrowthinresponseto
changesinfinancialfrictions
Journal title
Journal of Monetary Economics
Serial Year
2012
Journal title
Journal of Monetary Economics
Record number
846541
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