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http://hdl.handle.net/10419/56169
  

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dc.contributor.authorGiannetti, Mariassuntaen_US
dc.date.accessioned2012-03-28T13:05:13Z-
dc.date.available2012-03-28T13:05:13Z-
dc.date.issued2001en_US
dc.identifier.urihttp://hdl.handle.net/10419/56169-
dc.description.abstractThis paper investigates the relationship between financial development and firm size. The model shows that the efficiency of the financial system, measured by the level of monitoring costs, affects the extent of risk sharing within an economy and through this channel the availability of external finance to growing firms. If the provision of finance to projects is concentrated in few individuals and firm shocks are idiosyncratic, the risk premium is likely to rise with the amount of funds firms demand. As a consequence, keeping constant the level of opacity and risk, firms with better growth opportunities face higher costs of external finance in countries where the financial system does not favor risk sharing; this limits firm size. Empirical evidence is also provided. Financial constraints appear more stringent for firms whose optimal size is larger in countries where the financial system is less developed.en_US
dc.language.isoengen_US
dc.publisherEkonomiska Forskningsinst. Stockholmen_US
dc.relation.ispartofseriesSSE/EFI Working Paper Series in Economics and Finance 472en_US
dc.subject.jelG30en_US
dc.subject.jelO16en_US
dc.subject.ddc330en_US
dc.subject.keywordrisk sharingen_US
dc.subject.keywordfirm sizeen_US
dc.subject.keywordfinancial constraintsen_US
dc.subject.keywordfinancial developmenten_US
dc.subject.stwBetriebsgrößeen_US
dc.subject.stwInvestitionsrisikoen_US
dc.subject.stwTheorieen_US
dc.subject.stwInvestitionsrechten_US
dc.titleRisk sharing and firm size: Theory and international evidenceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn336733313en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

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