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- W3122310588 abstract "We show that firm size is increasing with the quality of the legal system in Mexico. A 1-standard-deviation improvement in the quality of the legal system is associated with a 0.15–0.30 standard deviation increase in firm size. We also show that the legal system affects firm size by reducing the idiosyncratic risk faced by firm owners. The legal system has a smaller impact on partnerships and corporations than on proprietorships, where risk is concentrated in a single owner. All of the findings are robust to instrumenting for legal quality using historical conditions. By focusing on firms in a single country, the data draw attention to the importance of informal institutions." @default.
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- W3122310588 date "2007-11-01" @default.
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- W3122310588 title "The Quality of the Legal System, Firm Ownership, and Firm Size" @default.
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- W3122310588 doi "https://doi.org/10.1162/rest.89.4.601" @default.
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