Not unlike elsewhere, the government in Finland has been keen to provide funding to Finnish firms, especially to small and medium-sized enterprises (SMEs). In this paper we review, in the light of the economic rationales for public efforts to finance SMEs, all of the government institutions...

We study the capital market implications of mandatory auditor choice. This regulatory intervention provides us with an instrument that can be used to examine the role of asymmetric information in the market for small business finance. We propose, in particular, a new exogenous measure of...