Determination of firm boundaries: Influence of regulations and rule of law on firm size
|Author:||Bc. Ondřej Dočkal|
|Year:||2015 - summer|
|Leaders:|| doc. Ing. Tomáš Cahlík CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Study of determinants of firm size is important for policy making and economic
theory, because much of economic growth takes place within firms and firms are
prevailing form of organisation of production units in modern economies. Theory
o↵ers contradictory views on e↵ect of quality of regulations and rule of law on firm
size. Better regulatory quality in the environment of post-soviet countries enables
firms to become larger. In the case of rule of law, the relationship seems to be rather
fragile and of a more complex nature with ambiguous e↵ects, hence the matter remains
subject of future research. Regulatory quality and rule of law explain only
very little part of variations in growth rates of firms.