Economics, Econometrics and Finance
4 years ago

Financial development boosts growth for young companies, leveling the playing field.

RePEc: Research Papers in Economics
Which Firms Benefit More from Financial Development
Jan Bena, Štěpán Jurajda

Paper Summary

Financial development helps young companies grow more than older ones, especially those with less equity capital. Size of the firm doesn't seem to matter much. This is because younger firms need more external financing, and financial systems are better at providing this support.

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