Inessa Love

TL;DR: In this article, the authors apply vector autoregression (VAR) to firm-level panel data from 36 countries to study the dynamic relationship between firms' financial conditions and investment, and find that the impact of financial factors on investment is significantly larger in countries with less developed financial systems.

TL;DR: Klapper and Love as discussed by the authors provide a study of firm-level corporate governance practices across emerging markets and a greater understanding of the environments under which corporate governance matters more, showing that better corporate governance is highly correlated with better operating performance and market valuation.

TL;DR: In this article, the authors provide evidence that financial development impacts growth by reducing financing constraints that would otherwise distort efficient allocation of investment, and they infer the constraints from the investment Euler equation by assuming that a firm's stochastic discount factor is a function of the firm's financial position.

TL;DR: This paper showed that industries with higher dependence on trade credit financing exhibit higher rates of growth in countries with weaker financial institutions, consistent with barriers to trade credit access among young firms, and most of the effect that they report comes from growth in the size of preexisting firms.

TL;DR: In this paper, Fisman and Love show that in countries with relatively weak financial institutions, industries with greater dependence on trade credit financing (measured by the ratio of accounts payable to total assets) grow faster than industries that rely less on such credit.