Financial Market Regulations, Entreprenurship and Firm Growth
| Reference number | |
| Coordinator | STIFTELSEN ENTREPRENÖRSKAPSFORUM - Entreprenörskapsforum, Stockholm |
| Funding from Vinnova | SEK 2 400 000 |
| Project duration | November 2012 - December 2016 |
| Status | Completed |
Purpose and goal
To increase knowledge about how regulations affect SMEs´ access to capital. In particular, to understand how new regulations like Basel III affects access to financial capital. Ultimately, the aim has been to generate policy recommendations. A general policy conclusion is that regulation of the financial markets have become so complex that they risk being counterproductive. A conclusion is that regulatory authorities and stakeholders need to understand the difficulty of detailed regulations controlling complex adaptive systems that are characterized by genuine uncertainty.
Expected results and effects
To design regulations that prevent future crises is hard. Insight is required into a range of factors, incl. financial innovation and how risk adverse stakeholders are. Today´s financial markets are more complex, this has led to new regulations to reduce the risk of crises. Empirical difficulties make it hard to measure the implementation of Basel III - its effects on investment and access to financial capital. One outcome has been the realization that experiences from the regulation of financial markets can be generalized and applied to other sectors in need of consumer protection.
Planned approach and implementation
The research has mainly been quantitatively oriented based on economic theories. Both junior (PhD) as well as senior people have been involved in the project, as have both Swedish and international researchers.