A Response to Hackethal and Schmidt (2003) 'Financing Patterns: Measurement Concepts and Empirical Results'

Corbett, Jenny; Edwards, Jeremy; Jenkinson, Tim; Mayer, Colin; Sussman, Oren

doi:10.2139/ssrn.493623

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A Response to Hackethal and Schmidt (2003) 'Financing Patterns: Measurement Concepts and Empirical Results'

11 Pages Posted: 3 Feb 2004

See all articles by Jenny Corbett

Jenny Corbett

Australian National University (ANU) - Crawford School of Public Policy; University of Oxford - Nissan Institute of Japanese Studies; Centre for Economic Policy Research (CEPR)

Jeremy Edwards

University of Cambridge - Faculty of Economics and Politics; CESifo (Center for Economic Studies and Ifo Institute)

Tim Jenkinson

University of Oxford - Said Business School; European Corporate Governance Institute (ECGI)

Colin Mayer

University of Oxford - Said Business School; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

Oren Sussman

European Corporate Governance Institute (ECGI)

Date Written: January 15, 2004

Abstract

Hackethal and Schmidt (2003) criticize a large body of literature on the financing of corporate sectors in different countries that questions some of the distinctions conventionally drawn between financial systems. Their criticism is directed against the use of net flows of finance and they propose alternative measures based on gross flows which they claim re-establish conventional distinctions. This paper argues that their criticism is invalid and that their alternative measures are misleading. There are real issues raised by the use of aggregate data but they are not the ones discussed in Hackethal and Schmidt's paper.

Keywords: Corporate finance, financial systems

JEL Classification: G30

Suggested Citation: Suggested Citation

Corbett, Jennifer M. and Edwards, Jeremy and Jenkinson, Tim and Mayer, Colin and Sussman, Oren, A Response to Hackethal and Schmidt (2003) 'Financing Patterns: Measurement Concepts and Empirical Results' (January 15, 2004). Available at SSRN: https://ssrn.com/abstract=493623 or http://dx.doi.org/10.2139/ssrn.493623