The Property Rights Security Is Important: How Exactly?
|Author:||Bc. Tereza Flanderová|
|Year:||2012 - summer|
|Leaders:|| PhDr. Jiří Schwarz Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This thesis focuses on the impact of institutional quality in a particular country on
various firm characteristics on a sample of developing economies from the Central and
Eastern Europe and Asia. In the first part we review the existing literature on the topic
and formulate our two countervailing theoretical hypotheses, both of which use the
transaction costs approach and predict different strategic behavior of the firms. In the
empirical part we employ seven firm characteristics as response variables to determine
the prevailing institutional influence on them, using microeconomic data from the
World Bank’s Business Environment and Enterprise Performance Survey (BEEPS) and
corresponding institutional indices from the Worldwide Governance Indicators dataset.
We find that in poor institutional environments, firms often engage in strategic behavior
that allows them to minimize transaction costs imposed upon them so that they merge
more activities together and become generally bigger.
|Downloadable:|| Bachelor Theses of Flanderova