Economic studies which examine the financing patterns of firms, particularly in emerging markets seldom consider the market environment in which they operate. The most recent Asian financial crisis and its exposure of institutional failures in the context of financial sector liberalization show...

When economists claim that rules are coordinating devices, they do not explain how those rules operate in the reality of organizational life. Rules do not indicate behaviour, since their most important characteristic is their remoteness from the solution. Thus, rules are merely frameworks for...