Financial Constraints, Quality of Institutions and Firm Size: What Do Perceptions Tell Us?

Abstract

Using a unique firm-level data set for 27 Eurasian countries, we investigate whether perceptions of financial constraints, corruption and legal institutions affect firm size. Our results are consistent with Beck et al. (2006). We find that perceived financial constraints are the only factor having a negative and significant effect on firm size, while perceived corruption and perceived quality of legal institutions do not have statistically significant effects.