We propose that the legal origin explanation of differences in financial indicators lacks the ability to satisfyingly describe investment performance and firm size effects. In this paper we investigate the impact of legal origin and firm size on investment performance for 20 111 firms in 58...

Abstract: There is by now a vast literature on how institutional environments affect corporate investments. Much of this literature centres on corporate governance structures and the broader legal environment in which firms operate. This paper conducts a comparative analysis of three countries...