Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe /
Desai, Mihir.
Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe / Mihir Desai, Paul Gompers, Josh Lerner. - Cambridge, Mass. National Bureau of Economic Research 2003. - 1 online resource: illustrations (black and white); - NBER working paper series no. w10165 . - Working Paper Series (National Bureau of Economic Research) no. w10165. .
December 2003.
We explore the impact of the institutional environment on the nature of entrepreneurial activity across Europe. Political, legal, and regulatory variables that have been shown to impact capital market development influence entrepreneurial activity in the emerging markets of Europe, but not in the more mature economies of Europe. Greater fairness and greater protection of property rights increase entry rates, reduce exit rates, and lower average firm size. Additionally, these same factors also associated with increased industrial vintage a size-weighted measure of age and reduced skewness in firm-size distributions. The results suggest that capital constraints induced by these institutional factors impact both entry and the ability of firms to transition and grow, particularly in lesser-developed markets.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe / Mihir Desai, Paul Gompers, Josh Lerner. - Cambridge, Mass. National Bureau of Economic Research 2003. - 1 online resource: illustrations (black and white); - NBER working paper series no. w10165 . - Working Paper Series (National Bureau of Economic Research) no. w10165. .
December 2003.
We explore the impact of the institutional environment on the nature of entrepreneurial activity across Europe. Political, legal, and regulatory variables that have been shown to impact capital market development influence entrepreneurial activity in the emerging markets of Europe, but not in the more mature economies of Europe. Greater fairness and greater protection of property rights increase entry rates, reduce exit rates, and lower average firm size. Additionally, these same factors also associated with increased industrial vintage a size-weighted measure of age and reduced skewness in firm-size distributions. The results suggest that capital constraints induced by these institutional factors impact both entry and the ability of firms to transition and grow, particularly in lesser-developed markets.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.