Resumen de Banking regulation, information asymmetries and industry growth: new evidence

Natalia Utrero González

• This article investigates the relationship between banking regulation and disclosure requirements and industry growth of 23 sectors over the period 1990 to 1999. We find evidence that the efficiency of the legal environment significantly affects industry growth. In particular, prudent banking regulation has a depressing effect of industry growth. Excessive disclosure requirements hinder the results of leveraged industrial sectors. Furthermore, we confirm positive effects of investor protection on growth.