Firm size and the impact of securities regulation

Douglas Cumming, April Knill and Nela Richardson

Journal of Comparative Economics, 2015, vol. 43, issue 2, 417-442

Abstract: Using a newly-assembled dataset of 45,220 firms across 46 countries spanning the years 1996–2007, we find incongruent effects of regulation across firm size. We find that public enforcement facilitates small firm security issuance, while private enforcement benefits large firms more than small firms. However, once small firms access equity markets, private enforcement enhances the amount of equity capital raised in domestic markets. Stronger public enforcement gives rise to larger firms raising capital internationally. Comprehensively, results suggest that public (private) enforcement is more (less) consequential to firm-level access to capital than previously believed.

Keywords: Securities regulation; Law and finance; Access to finance; Capital issuance (search for similar items in EconPapers)
JEL-codes: G38 K22 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:43:y:2015:i:2:p:417-442

DOI: 10.1016/j.jce.2014.11.003

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