Actions

Panoeconomicus
how to cite this article
share this article

Metrics

  • citations in SCIndeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:0
  • full-text downloads in 30 days:0

Contents

article: 3 from 3  
Back back to result list
2017, vol. 64, iss. 4, pp. 383-400
Which institutions are important for firms performance?: Evidence from Bayesian model averaging analysis
aHenan University in Kaifeng, China + Zeppelin University in Friedrichshafen, Germany + Charles University in Prague, Institute of Economic Studies, Prague, Czech Republic + Kaunas University of Technology, Kaunas, Lithuania
bMendel University in Brno, Czech Republic + Kaunas University of Technology, Kaunas, Lithuania
cZeppelin University in Friedrichshafen, Germany

emailjarko.fidrmuc@zu.de, kapounek@mendelu.cz, m.siddiqui@zeppelin-university.net
Project:
Project of the Research Council of Lithuania, No. MIP-016/2015
Project of the Czech Science Foundationvia, No. P403/14-28848S: Financial Crisis, Depreciation andCredit Crunch in CEECs

Keywords: institutional quality; insolvency; inefficient firms; Bayesian model averaging
Abstract
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.
References
*** (2013) Global financial stability report: Transition challenges to stability. Washington, DC: International Monetary Fund, International Monetary Fund
Acemoglu, D., Johnson, S., Robinson, J. (2001) The colonial origins of comparative development: An empirical investigation. American Economic Review, Vol. 91 (December), pp. 1369-1401
Acemoglu, D., Gallego, F.A., Robinson, J.A. (2014) Institutions, Human Capital, and Development. Annual Review of Economics, 6(1): 875-912
Alesina, A., Giuliano, P. (2015) Culture and Institutions. Journal of Economic Literature, 53(4): 898-944
Andrews, D., Cingano, F. (2014) Public policy and resource allocation: evidence from firms in OECD countries. Economic Policy, 29(78): 253-296
Arnold, J.M., Wörgötter, A. (2011) Structural reforms and the benefits of the enlarged EU internal market: still much to be gained. Applied Economics Letters, 18(13): 1231-1235
Arturo, B., Koskinen, Y., Pons, V. (2001) Corporate financial policies and performance prior to currency crises. University of Michigan - William Davidson Institute, Working Paper 386
Baumol, W.J. (1990) Entrepreneurship: Productive, Unproductive, and Destructive. Journal of Political Economy, 98(5, Part 1): 893-921
Beck, T., Levine, R. (2004) Stock markets, banks, and growth: Panel evidence. Journal of Banking & Finance, 28(3): 423-442
Becker, S.O., Boeckh, K., Hainz, C., Woessmann, L. (2015) The Empire Is Dead, Long Live the Empire! Long-Run Persistence of Trust and Corruption in the Bureaucracy. Economic Journal, 126(590): 40-74
Benito, A., Whitley, J. (2003) Implicit Interest Rates and Corporate Balance Sheets: An Analysis using Aggregate and Disaggregated UK Data. in: Bank of England Working Paper 193
Berger, J.O., Barbieri, M.M. (2004) Optimal predictive model selection. Annals of Statistics, 32(3): 870-897
Bowen, H.P., de Clercq, D. (2008) Institutional context and the allocation of entrepreneurial effort. Journal of International Business Studies, 39(4): 747-767
Chacar, A.S., Newburry, W., Vissa, B. (2010) Bringing institutions into performance persistence research: Exploring the impact of product, financial, and labor market institutions. Journal of International Business Studies, 41(7): 1119-1140
de Angela, M. (2015) Shadow Economy, Poverty and Institutional Quality. Quadernidel Premio Giorgio Rota, 3(3); 11-22
de Luca, G., Magnus, J.R. (2011) Bayesian Model Averaging and Weighted Average Least Squares: Equivariance, Stability, and Numerical Issues. Stata Journal, 11(4): 518-544
Dothan, M. (2006) Costs of financial distress and interest coverage ratios. Journal of Financial Research, 29(2): 147-162
Fernández, C., Ley, E., Steel, M.F. J. (2001) Model uncertainty in cross-country growth regressions. Journal of Applied Econometrics, 16(5): 563-576
Fidrmuc, J., Scharler, J. (2013) Financial development and the magnitude of business cycle fluctuations in OECD countries. Applied Economics Letters, 20(6): 530-533
Glaeser, E.L., la Porta, R., Lopezde-Silanes, F., Shleifer, A. (2004) Do institutions cause growth?. Journal of Economic Growth, 9(3), 271-303
Heider, F., Ljungqvist, A. (2015) As certain as debt and taxes: Estimating the tax sensitivity of leverage from state tax changes. Journal of Financial Economics, 118(3): 684-712
Henisz, W. J. (2002) The institutional environment for infrastructure investment. Industrial and Corporate Change, 11(2): 355-389
Henisz, W.J. (2004) Political Institutions and Policy Volatility. Economics and Politics, 16(1): 1-27
Horváth, R. (2013) Does trust promote growth?. Journal of Comparative Economics, 41(3): 777-788
Jarko, F., Siddiqui, M. (2015) Institutions and creative destruction in ceecs: Determinants of inefficient use of assets. Regensburg: Institute of East and Southeast European Studies, Working Paper, 353
la Porta, R., Lopez-De-Silanes, F., Shleifer, A., Vishny, R.W. (1998) Law and Finance. Journal of Political Economy, 106(6): 1113
Magnus, J.R., Powell, O., Prüfer, P. (2010) A comparison of two model averaging techniques with an application to growth empirics. Journal of Econometrics, 154(2): 139-153
Miller, T., Holmes, K.R., Feulner, E.J. (2013) Index of Economic Freedom: Promoting Economic Opportunity and Prosperity. Washington, DC: The Heritage Foundation
Mojon, B., Smets, F., Vermeulen, P. (2002) Investment and monetary policy in the euro area. Journal of Banking & Finance, 26(11): 2111-2129
Pitlik, H., Kouba, L. (2015) Does social distrust always lead to a stronger support for government intervention?. Public Choice, 163(3-4): 355-377
Poderys, D. (2015) Does Access to External Finance Affect Development of Small and Medium Enterprises and Economic Growth?. European Journal of Business Science and Technology, 1(1): 43
Qi, Y., Roth, L., Wald, J.K. (2010) Political rights and the cost of debt. Journal of Financial Economics, 95(2): 202-226
Ross, L., Zervos. Sara (1998) Stock Markets, Banks, and Economic Growth. American Economic Review, 88(3); 537-558
Schneider, F. (2003) The Development of the Shadow Economies and Shadow Labor Force of 22 Transition and 21 OECD Countries. Journal for Institutional Comparison, 1(1); 17-23
Schneider, F., Buehn, A., Montenegro, C.E. (2010) New Estimates for the Shadow Economies all over the World. International Economic Journal, 24(4): 443-461
Schneider, F. (2013) Size and development of the shadow economy of 31 European and 5 Other OECD countries from 2003 to 2013: A further decline. http://www.econ.jku.at/members/Schneider/files/publications/2013/ ShadEcEurope31_Jan2013.pdf
Simeon, D., Oliver, H., Caralee, M., Andrei, S. (2008) Debt Enforcement around the World. Journal of Political Economy, br. 116(6), str. 1105-1149
Svatopluk, K. (2016) Determinants of bank lending in CEECs: Evidence from Bayesian model averaging. in: Kapounek Svatopluk [ed.] The 18th International Conference on Enterprise and the Competitive Environment, Proceedings of, Brno: Mendel University in Brno-Faculty of Business and Economics, 359-366
Vodopivec, M., Wörgötter, A., Raju, D. (2005) Unemployment Benefit Systems in Central and Eastern Europe: A Review of the 1990s. Comparative Economic Studies, 47(4): 615-651
Voulgaris, F., Rizonaki, A. (2011) On the relationship between systematic risk and financial and operating risk: the case of the Greek listed firms. Global Business and Economics Review, 13(3/4): 204
Yasar, M., Paul, C.J. M., Ward, M.R. (2011) Property Rights Institutions and Firm Performance: A Cross-Country Analysis. World Development, 39(4): 648-661
Zellner, A. (1986) On assessing prior distributions and bayesian regression analysis with G-prior distributions. in: Goel Prem K.; Zellner Arnold [ed.] Bayesian Inference and Decision Techniques: Essays in Honor of Bruno de Finetti, Amsterdam: North Holland, 233-243
Zuzana, K., Tichá, M. (2013) Institutional aspects of financial integration: Bank-based vs. market-based financial systems. in: Machová Zuzana; Uhrová Natalie [ed.] The 11th International Conference Economic Policy in the European Union Member Countries: Selected Papers, Proceedings of, Ostrava: Technical University of Ostrava, 160-173
 

About

article language: English
document type: Original Scientific Paper
DOI: 10.2298/PAN151015031F
published in SCIndeks: 21/12/2017
Creative Commons License 4.0