 Institutional development and firm risk from a dynamic perspective: Does ownership structure matter?Anh-Tuan Le, Anh-Tuan Doan and Thu Phan Economic Analysis and Policy, 2021, vol. 72, issue C, 342-357 Abstract: In this paper, the relationship between institutional development and the risks of small and medium-sized enterprises (SMEs) in emerging Southeast Asian countries and the United States is investigated within a dynamic framework. The paper observes how two different types of national governance systems (well-developed vs. underdeveloped) influence firm risk. We also evaluate how ownership structure affects the impact of institutional environment quality on the risks of firms. We find that an improvement in institutional quality can reduce risks for SMEs in emerging Southeast Asian countries. However, there is no evidence of a relation between institutional development and firm risk in the United States. Our further analysis indicates that the adverse association between institutional development and risk is more pronounced for foreign-owned firms in both contexts studied. In contrast, state-owned firms in emerging Southeast Asian countries weaken the performance of increased institutional development in reducing firm risk, while this effect of state ownership does not exist in the United States. Keywords: Institutional development; Firm risk; Ownership structure (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:72:y:2021:i:c:p:342-357 DOI: 10.1016/j.eap.2021.09.007 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
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