Mugova, Shame2018-09-172018-09-172017Mugova, S. 2017. Financial sector development & firm growth in BRICS countries. Risk Governance and Control: Financial Markets & Institutions. 7(4-1): 126-134.2077-429X (print)2077-4303 (online)http://hdl.handle.net/10321/3147The development of an economy’s financial sector facilitates improved access to capital. This study focuses on firm growth in terms of how much assets it controls and BRICS is chosen as the empirical medium of investigation. The impact financial sector development on firm growth amongst 3353 listed firms in BRICS countries is investigated using a GMM estimation technique. Firm’s investment in assets increases the organizational resources and productive capacity needed to achieve growth in the market. Financial sector development improves access to capital and firms with higher access to external finance pursue growth opportunities using debt. Financial sector development helps firms to adjust their capital structures quickly thereby minimizing the costs of staying off target. The speed of adjustment of firms towards their target capital structure facilitates financing of firm growth. The study found that listed firms in Brazil, Russia India, China and South Africa have a target total liabilities-to-total assets ratio and financial sector development helps firms to partially adjust towards target levels and pursue growth opportunities.9 penFinancial Sector DevelopmentFirm GrowthTotal LiabilitiesArticlehttps://doi.org/10.22495/rgc7i4c1art4