How Well Do Institutional Theories Explain Firms' Perceptions of Property Rights? (2008)
Ayyagari, Meghana, Demirgüç-Kunt, Asli, Maksimovic, Vojislav
We examine how well several institutional- and firm-level factors explain firms’ perceptions of property rights protection. The institutional theories we investigate account for approximately 50%...
How Important Are Financing Constraints? The Role of Finance in the Business Environment (2008)
Ayyagari, Meghana, Demirgüç-Kunt, Asli, Maksimovic, Vojislav
What role does the business environment play in promoting or restraining firm growth? Recent literature points to a number of factors as obstacles to growth. Inefficient functioning of financial...
Firms as Financial Intermediaries: Evidence from Trade Credit Data (2007)
Asli Demirgüç-kunt, Vojislav Maksimovic, Jerry Caprio, Simeon Djankov, Luc Laeven
In this paper, we argue that non-financial firms act as intermediaries channeling short-term funds from the financial institutions in an economy to the their greatest use. Non-financial firms act in...
Firms as Financial Intermediaries: Evidence from Trade Credit Data (2007)
Asli Demirguc-kunt, Vojislav Maksimovic, Jerry Caprio, Simeon Djankov, Luc Laeven
In this paper, we argue that non-financial firms act as intermediaries channeling short-term funds from the financial institutions in an economy to the their greatest use. Non-financial firms act in...
2001a, Financial and Legal Constraints to Firm Growth: Does Size Matter? World Bank Mimeo (2007)
Thorsten Beck, Asli Demirgüç-kunt, Vojislav Maksimovic, George Clarke, Simeon Djankov, Luc Laeven
Abstract: Using a unique firm-level survey data base covering 54 countries, we investigate whether different financial, legal and corruption issues firms report as constraints actually affect their...
Firms as Financial Intermediaries: Evidence from Trade Credit Data (2007)
Asli Demirguc-kunt, Vojislav Maksimovic
expressed here are the authors ’ own and not necessarily those of the World Bank or its member countries Firms as Financial Intermediaries: Evidence from Trade Credit Data In this paper, we argue...
Asli Demirguc-kunt, Vojislav Maksimovic
for helpful comments and Jim Kuhn for help with the data. We are also grateful to that participants of
Capital Structures in Developing Countries Eighth draft October1999 (2007)
Laurence Booth, Varouj Aivazian, Asli Demirguc-kunt, Vojislav Maksimovic
This study uses a new data set to assess whether capital structure theory is portable across countries with different institutional structures. We analyze capital structure choices of firms in ten...
FINANCING PATTERNS AROUND THE WORLD: THE ROLE OF INSTITUTIONS (2007)
Thorsten Beck, Asli Demirgüç-kunt, Vojislav Maksimovic
Abstract: Using a firm-level survey database covering 48 countries, this paper investigates whether differences in financial and le gal development affect the way firms finance their investment. Our...
How Well Do Institutional Theories Explain Firms' Perceptions of Property Rights? (2006)
Ayyagari, Meghana, Demirgüç-Kunt, Asli, Maksimovic, Vojislav
We examine how well several institutional- and firm-level factors explain firms’ perceptions of property rights protection. The institutional theories we investigate account for approximately 50...
Self-Selection Models in Corporate Finance 1 (2005)
Kai Li, N. R. Prabhala, Espen Eckbo, Bill Greene, Gordon Phillips, ...
Corporate finance decisions are not made at random, but are usually deliberate decisions by firms or their managers to self-select into their preferred choices. This chapter reviews econometric...
Capital Structures in Developing Countries (eighth draft) (1999)
Laurence Booth, Varouj Aivazian, Asli Demirguc-kunt, Vojislav Maksimovic
This study uses a new data set to assess whether capital structure theory is portable across countries with different institutional structures. We analyze capital structure choices of firms in ten...
Law, finance, and firm growth (1998)
Asli Demirgüç-kunt, Vojislav Maksimovic
World Bank Conference on Term Financing for their comments. The views expressed here are the authors ’ own and not necessarily those of the World Bank or its member countries. Law, finance and firm...
Average-Rate Contingent Claims (1998)
Gurdip Bakshi, Dilip Madan, Helyette Geman, Richard Kolodny, Vojislav Maksimovic, Lemma Senbet, ...
This article studies the valuation of average-rate contingent claims (both arithmetic and geometric), whose importance in corporate risk management is increasing rapidly. Arbitrage-free...
Asset Efficiency and Reallocation Decision of Bankrupt Firms (1998)
Vojislav Maksimovic, Gordon Phillips, Judy Chevalier, John Graham, Charles Hadlock, Kathleen Weiss Hanley, ...
This paper investigates whether Chapter 11 bankruptcy provides a mechanism by which insolvent firms are efficiently reorganized and the assets of unproductive firms are effectively redeployed. We...
Stock Market Development and Financing Choices of Firms (1996)
Demirgüç-Kunt, Asli, Maksimovic, Vojislav
In many developing countries with emerging stock markets, banks are fearful of stock market development because they think that stock markets will reduce the volume of their business. This article...
Consistent estimation of cross-sectional models in event studies (1990)
B. Espen Eckbo, Vojislav Maksimovic, Joseph Williams
Event studies often include cross-sectional regressions of announcement effects on exogenous variables. If the event is voluntary and investors are rational, then standard OLS and GLS estimators are...
Pooling, Separating, and (1990)
Semiseparating Equilibria In, Charles B. Cadsby, Vojislav Maksimovic
this paper is organized in the following manner. In Section 1, we review and recast the theoretical environment of Myers and Majluf (1984). Their paper contains no discussion of multiple equilibria....
Financial Policy and a Firm's Reputation for Product Quality (1989)
Maksimovic, Vojislav, Titman, Sheridan
This paper analyzes the effect of financial policy on a firm's incentives to maintain its reputation for producing a high quality product. The paper demonstrates that in certain situations debt will...
Journal of Financial Economics 00 (2003) 000-000 (1987)
Is The Ipo, Michelle Lowry A, Er Ljungqvist, Vojislav Maksimovic, Jay Ritter, ...
This paper investigates underwriters' treatment of public information throughout the IPO pricing process. Two key findings emerge. First, public information is not fully incorporated into the...
How important are financing constraints ? The role of finance in the business environment
Ayyagari, Meghana, Demirguc-Kunt, Asli, Maksimovic, Vojislav
What role does the business environment play in promoting and restraining firm growth? Recent literature points to a number of factors as obstacles to growth. Inefficient functioning of financial...
Institutions, financial markets, and firms'choice of debt maturity
This report examines the maturity of liabilities in firms in thirty developed and developing countries between 1980 and 1991. It finds systematic differences in the use of long-term debt between...
Funding growth in bank-based and market-based financial systems : evidence from firm level data
Demirguc-Kunt, Asli, Maksimovic, Vojislav
The authors investigate whether firms'access to external financing, to fund growth differs between market-based, and bank-based financial systems. Using firm-level data for forty countries, they...
Capital structures in developing countries : evidence from ten countries
The authors investigate capital structures in a sample of the largest publicly traded firms in ten developing countries - Brazil, India, Jordan, the Republic of Korea, Malaysia, Mexico, Pakistan,...
Financial constraints, uses of funds, and firm growth : an international comparison
Demirguc-Kunt, Asli, Maksimovic, Vojislav
The authors focus on two issues. First they examine whether firms in different countries finance long-term and short term investment similarly. Second, they investigate whether differences in...
The determinants of financing obstacles
Thorsten Beck, Luc Laeven, Vojislav Maksimovic
The authors use survey data on a sample of over 10,000 firms from 80 countries to assess (1) how successful a priori classifications are in distinguishing between financially constrained and...
How well do institutional theories explain firms'perceptions of property rights?
Ayyagari, Meghana, Demirguc-Kunt, Asli, Maksimovic, Vojislav
The authors examine how well several institutional and firm-level factors and their interactions explain firms'perceptions of property rights protection. Their sample includes private and public...
Stock market development and firm financing choices
Demirguc-Kunt, Asli, Maksimovic, Vojislav
The authors empirically analyze the association between firm financing choices and the level of development of financial markets in 30 countries for the period 1980-91. For the whole sample, there is...
Firms as financial intermediaries - evidence from trade credit data
Demirguc-Kunt, Asli, Maksimovic, Vojislav
The authors argue that non-financial firms act as intermediaries, by channeling short-term funds from the financial institutions in an economy, to their best use. Non-financial firms act in this way...
Bank competition, financing obstacles, and access to credit
Beck, Thorsten, Demirguc-Kant, Asl', Maksimovic, Vojislav
Theory makes ambiguous predictions about the effects of bank concentration on access to external finance. Using a unique data base for 74 countries offinancing obstacles and financing patterns for...
Financial structure and economic development - firm, industry, and country evidence
Beck, Thorsten, Demirguc-Kunt, Asli, Levine, Ross, Maksimovic, Vojislav
The authors explore the relationship between financial structure - the degree to which a financial system is market- or bank-based - and economicdevelopment. They use three methodologies: 1) The...
Financial and legal institutions and firm size
Beck, Thorsten, Demirguc-Kunt, Asli, Maksimovic, Vojislav
The authors investigate how a country's financial institutions and the quality of its legal system explain the size attained by its largest industrial firms in a sample of 44 countries. Firm size is...
Financing patterns around the world : the role of institutions
Beck, Thorsten, Asl Demirguc-Kunt, Maksimovic, Vojislav
Using a firm-level survey database covering 48 countries, the authors investigate whether differences in financial and legal development affect the way firms finance their investments. The results...
Bank Competition and Access to Finance: International Evidence.
Beck, Thorsten, Demirguc-Kunt, Asli, Maksimovic, Vojislav
Using a unique database for 74 countries and for firms of small, medium, and large size we assess the effect of banking market structure on the access of firms to bank finance. We find that bank...
The determinants of financing obstacles
Beck, Thorsten, Demirguc-Kunt, Asli, Laeven, Luc, Maksimovic, Vojislav
The Industry Life Cycle and Acquisitions and Investment: Does Firm Organization Matter?
Vojislav Maksimovic, Gordon Phillips
We examine the effect of financial dependence on acquisition and investment within existing industries by single-segment and conglomerate firms for industries undergoing different long run changes in...
Structuring the Initial Offering: Who to Sell To and How to Do It
Vojislav Maksimovic, Pegaret Pichler
We develop a unified model of the issuer’s decisions that takes into account both mechanism design and adverse selection risk. The model enables us to determine the optimal amount of information...
Firm innovation in emerging markets : the roles of governance and finance
Ayyagari, Meghana, Demirguc-Kunt, Asli, Maksimovic, Vojislav
The authors investigate the determinants of firm innovation in over 19,000 firms across 47 developing economies. They define the innovation process broadly, to include not only core innovation such...
Asli Demirgüç-Kunt, Vojislav Maksimovic
We investigate how differences in legal and financial systems affect firms' use of external financing to fund growth. We show that in countries whose legal systems score high on an efficiency index,...
Financial and legal constraints to firm growth - Does size matter?
Beck, Thorsten, Demirguc-Kunt, Asli, Maksimovic, Vojislav
Using a unique firm-level survey data base, covering fifty four countries, the authors investigate whether different financial, legal, and corruptionissues that firms report as constraints, actually...
Business Environment and the Incorporation Decision
Demirguc-Kunt, Asli, Love, Inessa, Maksimovic, Vojislav
Using firm-level data from 52 countries, the authors investigate how a country's institutions and business environment affect firms'organizational choices and the effects of organizational form on...
What determines protection of property rights ? An analysis of direct and indirect effects
Ayyagari, Meghana, Demirguc-Kunt, Asli, Maksimovic, Vojislav
Using cross-country data, the authors evaluate historical determinants of protection of property rights. They examine four historical theories that focus on conceptually distinct causal variables...
Asset Efficiency and Reallocation Decisions of Bankrupt Firms
Vojislav Maksimovic, Gordon Phillips
This paper investigates whether Chapter 11 bankruptcy provides a mechanism by which insolvent firms are efficiently reorganized and the assets of unproductive firms are effectively redeployed. We...
We analyze the market for corporate assets. There is an active market for corporate assets, with close to seven percent of plants changing ownership annually through mergers, acquisitions, and asset...
Do Conglomerate Firms Allocate Resources Inefficiently Across Industries? Theory and Evidence
Vojislav Maksimovic, Gordon Phillips
We develop a profit-maximizing neoclassical model of optimal firm size and growth across different industries based on differences in industry fundamentals and firm productivity. In the model, a...
Financial and Legal Constraints to Growth: Does Firm Size Matter?
THORSTEN BECK, ASLI DEMIRGÜÇ-KUNT, VOJISLAV MAKSIMOVIC
Using a unique firm-level survey database covering 54 countries, we investigate the effect of financial, legal, and corruption problems on firms' growth rates. Whether these factors constrain growth...
Brennan, Michael J, Maksimovic, Vojislav, Zechner, Josef
This paper shows that, even in the presence of a perfectly competit ive banking industry, it is optimal for firms with market power to en gage in vendor financing if credit customers have lower...
Debt, Agency Costs, and Industry Equilibrium.
Maksimovic, Vojislav, Zechner, Josef
The authors show that risk characteristics of projects' cash flows are endogenously determined by the investment decisions of all firms in an industry. As a result, in reasonable settings, financial...
Kim, Moshe, Maksimovic, Vojislav
The authors investigate a class of agency costs of debt that arise because debt financing affects the firm's incentives to use inputs efficiently. A methodology for estimating this class of costs is...
Product Market Imperfections and Loan Commitments.
The author shows, in a model of competitive banks, that the characteristics of loan contracts are affected by product market imperfections in the borrower's industry. A bank loan commitment increases...
Issue Size Choice and "Underpricing" in Thrift Mutual-to-Stock Conversions.
Maksimovic, Vojislav, Unal, Haluk
Issue size choice and underpricing in mutual-to-stock conversions of thrifts are explained as a function of growth opportunities, perquisite consumption, and proprietary information. The authors...
The Industry Life Cycle, Acquisitions and Investment: Does Firm Organization Matter?
VOJISLAV MAKSIMOVIC, GORDON PHILLIPS
We examine the effect of industry life-cycle stages on within-industry acquisitions and capital expenditures by conglomerates and single-segment firms controlling for endogeneity of organizational...
Formal versus informal finance : evidence from China
Ayyagari, Meghana, Demirguc-Kunt, Asli, Maksimovic, Vojislav
China is often mentioned as a counterexample to the findings in the finance and growth literature since, despite the weaknesses in its banking system, it is one of the fastest growing economies in...
Bank competition and access to finance: international evidence
Thorsten Beck, Asli Demirgüç-Kunt, Vojislav Maksimovic
Using a unique database for 74 countries and for firms of small, medium, and large size we assess the effect of banking market structure on the access of firms to bank finance. We find that bank...
The Industry Life Cycle and Acquisitions and Investment: Does Firm Organization Matter?
Vojislav Maksimovic, Gordon Phillips
We examine the effect of financial dependence on the acquisition and investment of single segment and conglomerate firms for different long-run changes in industry conditions. Conglomerates and...
Gordon M Phillips, Vojislav Maksimovic
We analyze the market for firms, divisions, and plants of manufacturing firms using a large sample of plant-level data for the period 1974-92. There is an active market for corporate assets, with...
Do Conglomerate Firms Allocate Resources Inefficiently?
Gordon M Phillips, Vojislav Maksimovic
We develop a profit-maximizing neoclassical of optimal firm size and growth across different industries. The model predicts how conglomerate firms will allocate resources across divisions over the...
Optimal Firm Size and the Growth of Conglomerate and Single-Industry Firms
Gordon M Phillips, Vojislav Maksimovic
We develop a profit-maximizing neoclassical model of optimal firm size and growth across different industries based on differences in industry fundamentals and firm productivity. The model predicts...
Efficiency of Bankrupt Firms and Industry Conditions: Theory and Evidence
Gordon M Phillips, Vojislav Maksimovic
We show that the incentives to reorganize inefficient firms and redeploy their assets depend on the change in industry output and industry characteristics. We use plant-level data to investigate the...
Capital Structure in Repeated Oligopolies
This article analyzes the effect of a firm's capital structure on its product market strategy in the context of a model of repeated oligopoly. I show that there exists an upper bound on the firm's...
Financial Policy and a Firm's Reputation for Product Quality
Vojislav Maksimovic, Sheridan Titman
This paper analyzes the effect of financial policy on a firm's incentives to maintain its reputation for producing a high quality product. The paper demonstrates that in certain situations debt will...
Stock Market Development and Financing Choices of Firms.
Demirguc-Kunt, Ash, Maksimovic, Vojislav
In many developing countries with emerging stock markets, banks are fearful of stock market development because they think that stock markets will reduce the volume of their business. This article...
Technological Innovation and Initial Public Offerings.
Maksimovic, Vojislav, Pichler, Pegaret
This article shows how both technological and competitive risks affect the timing of private and initial public offerings in an emerging industry. Early private financing occurs in industries that...
Equilibrium Dominance in Experimental Financial Markets.
Cadsby, Charles Bram, Frank, Murray, Maksimovic, Vojislav
We examine the predictive power of equilibrium dominance in experimental markets where firms with investment opportunities have an informational advantage over potential investors and are permitted...
Financial Policy and Reputation for Product Quality.
Maksimovic, Vojislav, Titman, Sheridan
The effect of financial policy on a firm's incentives to maintain its reputation for producing a high-quality product is analyzed. It is demonstrated that in certain situations debt will reduce a...
Consistent Estimation of Cross-Sectional Models in Event Studies.
Eckbo, B Espen, Maksimovic, Vojislav, Williams, Joseph
Event studies often include cross-sectional regressions of announcement effects on exogenous variables. If the event is voluntary and investors are rational, then standard OLS and GLS estimators are...
Pooling, Separating, and Semiseparating Equilibria in Financial Markets: Some Experimental Evidence.
Cadsby, Charles B, Frank, Murray, Maksimovic, Vojislav
This study investigates experimental financial markets in which firms possess more information than do potential investors. Firms were given opportunities to undertake positive net present value...
Post-Merger Restructuring and the Boundaries of the Firm
Vojislav Maksimovic, Gordon Phillips, N. R. Prabhala
Mergers and acquisitions are a fast way for a firm to grow. Using plant-level data, we examine how firms redraw their boundaries after acquisitions. We find that there is a large amount of...
Gordon M Phillips, Vojislav Maksimovic
We analyze the market for firms, divisions, and plants of manufacturing firms using a large sample of plant-level data for the period 1974-92. There is an active market for corporate assets, with...
Do Conglomerate Firms Allocate Resources Inefficiently?
Gordon M Phillips, Vojislav Maksimovic
We develop a profit-maximizing neoclassical of optimal firm size and growth across different industries. The model predicts how conglomerate firms will allocate resources across divisions over the...
Optimal Firm Size and the Growth of Conglomerate and Single-Industry Firms
Gordon M Phillips, Vojislav Maksimovic
We develop a profit-maximizing neoclassical model of optimal firm size and growth across different industries based on differences in industry fundamentals and firm productivity. The model predicts...
Efficiency of Bankrupt Firms and Industry Conditions: Theory and Evidence
Gordon M Phillips, Vojislav Maksimovic
We show that the incentives to reorganize inefficient firms and redeploy their assets depend on the change in industry output and industry characteristics. We use plant-level data to investigate the...
Financing patterns around the world: Are small firms different?
Beck, Thorsten, Demirgüç-Kunt, Asli, Maksimovic, Vojislav
Using a firm-level survey database covering 48 countries, we investigate how financial and institutional development affects financing of large and small firms. Our database is not limited to large...
How Important Are Financing Constraints? The Role of Finance in the Business Environment
Meghana Ayyagari, Asli Demirgüç-Kunt, Vojislav Maksimovic
What role does the business environment play in promoting or restraining firm growth? Recent literature points to a number of factors as obstacles to growth. Inefficient functioning of financial...