Both shareholder protection and creditor protection are considered in a general equilibrium model with two competing technologies. Entrepreneurs are wealth-constrained and resort to banks and the equity market for external financing. The economy's financial structure is determined by the relative quality of shareholder protection and creditor protection. The coexistence of banks and the equity market is shown to be beneficial. The external financing preference of a firm follows the pecking order with limited debt capacity. Better creditor protection leads to larger debt capacity. I show that the ownership structure has a hump-shape relation with the quality of shareholder protection. Ownership is more concentrated with better creditor protection and in firms with wealthier entrepreneurs. The market return and entrepreneurial activities weakly increase with the quality of both shareholder protection and creditor protection. Increases in shareholder protection lower the firm values for firms that use sufficiently small amount of equity financing.