Which Institutions Are Important for Firms Performance? Evidence from Bayesian Model Averaging Analysis
Jarko Fidrmuc (),
Svatopluk Kapounek () and
Martin Siddiqui ()
Additional contact information
Martin Siddiqui: Zeppelin University in Friedrichshafen, Germany
Panoeconomicus, 2017, vol. 64, issue 4, 383-400
Using a rich dataset on individual firms in selected EU countries between 2005 and 2012, we document a surprisingly high share of assets tied in highly inefficient firms. Moreover, we discuss different channels through which institutions may affect firm financial developments and thus the long-run growth. Using Bayesian model averaging analysis, we discuss the importance of different types of economic, financial and political institutions. We show that high institutional quality improves the financial conditions of firms. However, too lax business regulations may worsen firms’ performance possibly due to excessive risk taking behavior.
Keywords: : Institutional quality; Insolvency; Inefficient firms; Bayesian model averaging (search for similar items in EconPapers)
JEL-codes: C33 K23 O43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
http://www.panoeconomicus.rs/casopis/2017_4/01%20J ... artin%20Siddiqui.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:voj:journl:v:64:y:2017:i:4:p:383-400
Access Statistics for this article
Panoeconomicus is currently edited by Kosta Josifidis
More articles in Panoeconomicus from Savez ekonomista Vojvodine, Novi Sad, Serbia
Bibliographic data for series maintained by Ivana Horvat ( this e-mail address is bad, please contact ).