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Financial Constraints, Quality of Institutions and Firm Size: What Do Perceptions Tell Us?

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  • Nurullah Gur

Abstract

Using a unique firm-level data set for 27 Eurasian countries, we investigate whether perceptions of financial constraints, corruption and legal institutions affect firm size. Our results are consistent with Beck et al. (2006). We find that perceived financial constraints are the only factor having a negative and significant effect on firm size, while perceived corruption and perceived quality of legal institutions do not have statistically significant effects. Copyright Eurasia Business and Economics Society 2012

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  • Nurullah Gur, 2012. "Financial Constraints, Quality of Institutions and Firm Size: What Do Perceptions Tell Us?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(2), pages 17-36, December.
    • Handle: RePEc:spr:eurase:v:2:y:2012:i:2:p:17-36
    DOI: 10.14208/BF03353835
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    Cited by:

    1. Kose John & Joe Shangguan & Ravi Mateti, 2015. "Financing activities after accounting restatements: an examination of SEOs and PIPEs," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 139-160, June.
    2. Marco Lau & Yongyang Su & Na Tan & Zhe Zhang, 2014. "Hedging China’s energy oil market risks," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 99-112, June.
    3. Trong Ngo & Andrew Mullineux & Anh Ly, 2014. "The impact of scale of operation on financial performance in microfinance," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 177-198, December.
    4. Aysan, Ahmet Faruk & Babacan, Mehmet & Gür, Nurullah & Süleyman, Selim, 2023. "Firm Size and Financing Behavior during the COVID-19 Pandemic: Evidence from SMEs in Istanbul," MPRA Paper 116300, University Library of Munich, Germany, revised 2023.
    5. Mohamed Mekki Ben Jemaa & Sahar Obey, 2018. "On the Trade-off Between Size, Sustainability and Social Outcome of the Microfinance Institutions: A Two Stages Bootstrapped DEA Approach," Working Papers 1246, Economic Research Forum, revised 28 Oct 2018.
    6. Alessandro Zeli, 2014. "The financial distress indicators trend in Italy: an analysis of medium-size enterprises," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 199-221, December.

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    More about this item

    Keywords

    Financial Constraints; Corruption; Quality of Legal Institutions; Business Environment; Firm Size; G30; G10; O16; K40;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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