Property Rights and Finance

Which is the tighter constraint on private sector investment: weak property rights or limited access to external finance? From a survey of new firms in post-communist countries, we find that weak property rights discourage firms from reinvesting their profits, even when bank loans are available. Where property rights are relatively strong, firms reinvest their profits; where they are relatively weak, entrepreneurs do not want to invest from retained earnings.

MoreLess

Year of publication:	2002-03
Authors:	Johnson, Simon ; McMillan, John ; Woodruff, Christopher
Institutions:	National Bureau of Economic Research (NBER)

Online Resource

Check full text access |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	NBER Working Papers.
Type of publication:	Book / Working Paper
Notes:	CF published as Johnson, Simon, John McMillan and Christoher Woodruff. "Property Rights And Finance," American Economic Review, 2002, v92(5,Dec), 1335-1356. Number 8852
Classification:	D23 - Organizational Behavior; Transaction Costs; Property Rights ; P23 - Factor and Product Markets; Industry Studies; Population
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005580506