This paper examines how a country’s organization of its financial activities its financial structure affects how corporations invest and raise funds. We provide an analysis of how financial structure affects economic growth for a given degree of financial and economic development. Differences in the organization of financial activities are shown to affect the creation of new businesses as well ...

A puzzling fact in macroeconomics is that small and transitory shocks seem to be followed by large and persistent fluctuations in macroeconomic variables. Theoretical models explaining this empirical fact focus on the borrower but most of them neglect to model the bank. This paper proposes a framework in which changes in the financial condition of banks can have persistent aggregate consequence...

Full, on-time, and with Quality disclosure of financial information can lead to the transparency of such information and decreases information asymmetry. Among the published information of firms, earnings are of priority importance attended by many users; therefore, the issue of the transparency of accounting earnings is of high importance. The aim of this study is investigating the accounting ...

We develop a growth model with endogenous technological progress in which the financial sector plays an explicit role. Thereby we discuss the role of different financial regimes in the growth process. We contrast a bank-dominated financial system with a market-dominated system. In the first one a financial intermediary (a bank) is able to solve informational problems, however, at a cost. There ...

Financial constraints and differences in entrepreneurial ability are among the key factors affecting economic performance in developing countries. Emphasizing the link between the theory microfoundations and the data, the paper considers a heterogeneous agents model of occupational choice with moral hazard under three financial contract regimes differing in their degree of financial intermediat...

Countries differ in the extent to which their financial systems are bank-based or market-based. This paper presents evidence on the impact of financial development and structure on bank performance using bank-level data for a large number of developed and developing countries. For countries that have underdeveloped financial systems, we show that a move towards a more developed financial system...

This paper explores the empirical relevance of banking market structure on growth. There is substantial evidence of a positive relationship between the level of development of the banking sector of an economy and its long-run output growth. Little is known, however, about the role played by the market structure of the banking sector on the dynamics of capital accumulation. This paper provides e...

Nicoló Musmeci, Vincenzo Nicosia, Tomaso Aste, 4 Tiziana Di Matteo, 3 and Vito Latora ∗ Department of Mathematics, King’s College London, The Strand, London WC2R 2LS, UK School of Mathematical Sciences, Queen Mary, University of London, Mile End Road, London E1 4NS, UK Department of Computer Science, University College London, Gower Street, London, WC1E 6BT, UK Systemic Risk Centre, London Scho...