Financial Development and Language Structures

Using cross country data, we explore the role of linguistic structures for financial development countries. Specially, investigate if future time reference (FTR), requirement an obligatory tense marking in languages, matters or not. Our results show that countries speaking weak FTR language a not needing dedicated have enhanced relative to strong language. Discounting less having connection between present and future—characteristics languages—has implications caring about saving investment, efficient property rights, protection shareholders cost acquiring information. are robust multiple measures inclusion determinants same. Finally, benefit more when their is low.