Firm Size and Judicial Efficiency: Evidence from the Neighbour's Court

Giacomelli, Silvia; Menon, Carlo

doi:10.2139/ssrn.2221857

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Firm Size and Judicial Efficiency: Evidence from the Neighbour's Court

Bank of Italy Temi di Discussione (Working Paper) No. 898

45 Pages Posted: 21 Feb 2013

See all articles by Silvia Giacomelli

Carlo Menon

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI); Bank of Italy

Date Written: January 30, 2013

Abstract

We investigate the causal relationship between judicial efficiency and firm size across Italian municipalities exploiting spatial discontinuities in court jurisdictions for identification. The estimated coefficients suggest that the reduction of the length of civil proceedings could exert, all other things being equal, a significant and positive effect on the average size of Italian firms. Results are robust to a number of different specifications, based on two different databases.

Keywords: judicial efficiency, firm size, spatial discontinuity, Italy

JEL Classification: K4, L11, O18

Suggested Citation: Suggested Citation

Giacomelli, Silvia and Menon, Carlo, Firm Size and Judicial Efficiency: Evidence from the Neighbour's Court (January 30, 2013). Bank of Italy Temi di Discussione (Working Paper) No. 898, Available at SSRN: https://ssrn.com/abstract=2221857 or http://dx.doi.org/10.2139/ssrn.2221857