Bank-Industry versus Stock Market-Industry Relationships

This book explores the relationship between financial systems and firms' growth in European countries, dividing them into bank-oriented and market-oriented systems. It presents case studies on Belgium, Great Britain, France, and Italy and emphasizes the importance of having a sophisticated and stable financial system that evolves with demand forces.

Format: Hardback
Length: 134 pages
Publication date: 31 March 2023
Publisher: Taylor & Francis Ltd

This book delves into a comprehensive exploration of the intricate relationship between financial systems and firms' growth in historical context within select European countries. It is widely recognized that financial systems hold immense significance in shaping economic growth, playing a pivotal role in mobilizing savings, pricing risks, and allocating capital to businesses. In contemporary economies, these systems are crucial in driving economic development.

Conventionally, countries are categorized into two main groups: bank-oriented systems, exemplified by Continental Europe and Japan, and market-oriented systems, found in Anglo-Saxon countries. The chapters within this book present case studies on Belgium, Great Britain, France, and Italy, highlighting the crucial role of financial systems in sustaining growth and industrialization over time. It is emphasized that financial systems do not directly trigger growth processes and industrialization but rather play a supportive role in maintaining them.

Each society possesses its unique financial system that aligns with its historical trajectory, without any one system being inherently superior or inferior to others. The key objective is to establish a sophisticated and stable financial system that can adapt to changing demand forces and evolve accordingly.

Understanding the historical context and evolution of financial systems is of paramount importance, as it sheds light on the factors that have influenced their development and the impact they have had on societies. This book serves as a valuable resource for students interested in economics, business history, and finance, offering insights into the complex dynamics between financial systems and firms' growth.

The chapters in this book were originally published as a special issue of Business History, further enhancing its relevance and authority in the field.

Weight: 430g
Dimension: 246 x 174 (mm)
ISBN-13: 9781032437422