Financial Intermediation, Markets, and Alternative Financial Sectors

Franklin Allen, Jun Qian, Elena Carletti and Patricio Valenzuela
Additional contact information
Franklin Allen: University of PA
Jun Qian: Boston College
Elena Carletti: European University Institute

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

Abstract: We provide a comprehensive review of firms' financing channels (internal and external, domestic and international) around the globe, with the focus on alternative finance-financing from all the nonmarket, non-bank external sources. We argue that while traditional financing channels, including financial markets and banks, provide significant sources of funds for firms in developed countries, alternative financing channels provide an equally important source of funds in both developed and developing countries. Alternative finance is often the dominant source of funds for firms in fast growing economies. We compare market- and bank-finance with alternative finance, along with the supporting mechanisms such as legal and institutional structures. Much more research is needed to better understand alternative finance and its role in corporate financing. We suggest ways to obtain firm-level data on various forms of alternative finance and thus overcome the main obstacle in the field.

JEL-codes: G20 K00 O50 (search for similar items in EconPapers)
Date: 2012-03
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Citations: View citations in EconPapers (7)

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Related works:
Chapter: Financial Intermediation, Markets, and Alternative Financial Sectors (2013)
Working Paper: Financial Intermediation, Markets, and Alternative Financial Sectors (2012)
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