scholarly journals Determinants of the Financial Constraint and Its Effects on the SME Growth in Central Asia?

2021 ◽  
Vol 14 (27) ◽  
pp. 1-28
Author(s):  
Mirgul NIZAEVA ◽  
◽  
Ali COSKUN ◽  
Keyword(s):  
Central Asia ◽  
Firm Growth ◽  
Business Environment ◽  
Financing Constraints ◽  
Financial Constraint ◽  
Access To Finance ◽  
Level Data ◽  
Financing Constraint ◽  
Specific Factors ◽  
Country Specific

This study investigates the firm- and country-specific factors that affect SMEs’ access to finance and the relationship between financial constraint and firm growth in emerging economies of Central Asia. To address the research questions, a two-stage empirical analysis including ordered probit, probit, and feasible generalized least squares (FGLS) specifications were conducted. Firm-level data used in the analysis is obtained from the fifth round of the Business Environment and Enterprise Survey (BEEPS V) and country-level data acquired from national and international datasets. The study's findings implied that in the Central Asian economies, country-specific factors are more likely to affect access to external finance of SMEs than firm-specific determinants. Among firm-specific factors, only foreign ownership is significantly related to financing constraint perception of SMEs; where, the interest rate is positively, and domestic credit market, inflation, and log of GDP per capita are negatively related to financing constraint level. In Central Asia, an insignificant relationship between growth and financing constraints was found. The determinants of financing constraints and access to finance–growth relations, which address the issue of great significance for SME growth in the selected countries, were interpreted with region-specific factors.

scholarly journals Investigating the Relationship Between Financial Constraint and Growth of SMEs in South Eastern Europe

SAGE Open ◽  
2019 ◽  
Vol 9 (3) ◽  
pp. 215824401987626
Author(s):  
Mirgul Nizaeva ◽  
Ali Coskun
Keyword(s):  
Eastern Europe ◽  
Banking Sector ◽  
Generalized Least Squares ◽  
Business Environment ◽  
Financial Constraint ◽  
Access To Finance ◽  
South Eastern ◽  
Domestic Credit ◽  
South Eastern Europe ◽  
Enterprise Survey

This study investigates the determinants of financial constraint and its impact on the growth of small and medium-sized enterprises (SME) in South Eastern Europe (SEE). In this study, enterprise data from the fifth round of the Business Environment and Enterprise Survey (BEEPS V) undertaken in 2012-2016 were used, and an empirical analysis including ordered probit, probit, and feasible generalized least squares (FGLS) specifications was conducted. The findings evidence that financial constraint is significantly detrimental to SME growth in the region. Moreover, SMEs operating in trade sector perceive access to finance comparatively less, whereas mature enterprises perceive it as more constraining. Among country-specific factors, high banking sector concentration adversely affects access to finance, whereas more domestic credit provided to private sector mitigates the financial constraint perception of SMEs.

Financialisation, institutions and financing constraints in developing countries

2019 ◽  
Vol 43 (4) ◽  
pp. 825-866 ◽  
Author(s):  
Charilaos Mertzanis
Keyword(s):  
Developing Countries ◽  
Financing Constraints ◽  
External Financing ◽  
Access To Finance ◽  
Firm Level ◽  
Country Level ◽  
Level Data ◽  
Financial Depth ◽  
Level Information ◽  
The Impact

Abstract The paper uses a consistent firm-level data from the World Banks Enterprise Surveys to explore the impact of financialisation in the economy on firms’ access to finance in 138 developing countries. Access to finance reflects survey-based firms’ perceptions of external financing constraints. Financialisation is proxied by consistent cross-country measures of financial depth. These proxies capture separately the role of bank-based versus market-based financing. Firm-, sector- and country-level information is jointly used for the analysis. Firm-specific characteristics and economic and non-economic national factors are included as controls. The results show that the proxies of financialisation are broadly robust predictors of financing constraints of firms in developing countries. However, the magnitude of the financialisation effect varies between bank-based and market-based channels of financing as well as between low- and high-income countries, and it is influenced by social, institutional and religious factors.

Estimating the Electoral Effects of Voter Turnout

2010 ◽  
Vol 104 (2) ◽  
pp. 268-288 ◽  
Author(s):  
THOMAS G. HANSFORD ◽  
BRAD T. GOMEZ
Keyword(s):  
Voter Turnout ◽  
Instrumental Variable ◽  
Presidential Elections ◽  
Empirical Test ◽  
The United States ◽  
Electoral Outcomes ◽  
Level Data ◽  
Electoral Choice ◽  
High Turnout ◽  
Specific Factors

This article examines the electoral consequences of variation in voter turnout in the United States. Existing scholarship focuses on the claim that high turnout benefits Democrats, but evidence supporting this conjecture is variable and controversial. Previous work, however, does not account for endogeneity between turnout and electoral choice, and thus, causal claims are questionable. Using election day rainfall as an instrumental variable for voter turnout, we are able to estimate the effect of variation in turnout due to across-the-board changes in the utility of voting. We re-examine the Partisan Effects and Two-Effects Hypotheses, provide an empirical test of an Anti-Incumbent Hypothesis, and propose a Volatility Hypothesis, which posits that high turnout produces less predictable electoral outcomes. Using county-level data from the 1948–2000 presidential elections, we find support for each hypothesis. Failing to address the endogeneity problem would lead researchers to incorrectly reject all but the Anti-Incumbent Hypothesis. The effect of variation in turnout on electoral outcomes appears quite meaningful. Although election-specific factors other than turnout have the greatest influence on who wins an election, variation in turnout significantly affects vote shares at the county, national, and Electoral College levels.

The Optimal Diversification Strategy in Pharmaceutical Industry: Balance-centred or Hetero-centred?

2021 ◽  
pp. 097172182110056
Author(s):  
Keungoui Kim ◽  
Junseok Hwang ◽  
Sungdo Jung ◽  
Eungdo Kim
Keyword(s):  
Business Performance ◽  
Business Environment ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Firm Level ◽  
Data Set ◽  
Pharmaceutical Firms ◽  
Level Data ◽  
Market Product ◽  
High Uncertainty

Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance.

scholarly journals Do the Green Credit Guidelines Affect Corporate Green Technology Innovation? Empirical Research from China

2021 ◽  
Vol 18 (4) ◽  
pp. 1682
Author(s):  
Min Hong ◽  
Zhenghui Li ◽  
Benjamin Drakeford
Keyword(s):  
Technology Innovation ◽  
Green Technology ◽  
Debt Financing ◽  
Financing Constraints ◽  
Difference Model ◽  
Financing Constraint ◽  
Important Means ◽  
Regulatory Commission ◽  
The Impact ◽  
Innovation Policies

Green technology innovation is regarded as an important means to achieve sustainable development. Countries all over the world mainly implement green technology innovation policies from the aspects of environmental regulation and financing constraints. The effect of financing constraint policy on enterprise green technology innovation remains to be investigated. Based on the event of “green credit guidelines” issued by China Banking Regulatory Commission in 2012, this paper collects the panel data of China’s 2825 listed companies from 2007 to 2018, constructs a difference-in-difference model, and studies the impact of green credit guidelines on corporate green technology innovation and its mechanism. The empirical results show: First, green credit guidelines can promote corporate green technology innovation on the whole. Second, the mechanism of green credit on enterprise green technology innovation is identified. Green credit guidelines mainly limited green technology innovation through reducing debt financing, rather than through financing constraints. Third, the impact of green credit guidelines on green technology innovation is heterogeneous. Green credit guidelines have a significant effect on the green technology innovation of state-owned and large enterprises, but have no effect on the green technology innovation of non-state-owned and small ones.

scholarly journals Perception of the Selected Business Environment Aspects by Service Firms

2019 ◽  
Vol 10 (19) ◽  
pp. 111-127 ◽  
Author(s):  
Khurram Ajaz Khan ◽  
Gentjan Çera ◽  
Vaclav Netek
Keyword(s):  
Factor Analysis ◽  
Service Sector ◽  
Business Environment ◽  
Service Firms ◽  
Business Sector ◽  
Similar Group ◽  
Access To Finance ◽  
Business Support ◽  
Service Sectors ◽  
Macroeconomic Environment

The business environment is a profound concern for the state and institutions to make it encouraging to boost entrepreneurship. Given such relevance of the business environment, this paper aims to link selected business environment aspects to business sector. The study identified the perceived differences between sectors in the Czech and Slovak Republics and then a comparison of a similar group of firms. To shape the study, survey-based research planned and conducted in two segments of firm’s (service and non-service), covered 641 enterprises. The current research adopted factor analysis and then t-test and Mann-Whitney test to determine the results. The major findings of the study reveal that the Slovak firms in the service sector scored higher in macroeconomic environment, consumers’ consumption and competition factors and lower in access to finance factor, as compared to their non-service counterparts. However, another key finding indicates that the Czech entrepreneurs’ perception did not statistically differ in any selected aspects of business environment between the firms operating in service and non-service sectors. In all the cases business support was found insignificant. This paper adds to the existing literature in entrepreneurship by offering a better understanding of the linkage between business sector and business environment aspects.

scholarly journals Development and Access to Finance of Small and Medium-Sized Enterprises in Mongolia

2020 ◽  
pp. 265-294
Author(s):  
Gan-Ochir Doojav ◽  
Davaajargal Luvsannyam ◽  
Bilguun Sukhbaatar ◽  
Bilguunzul Sodnomdarjaa ◽  
Tsolmon Otgonbat ◽  
...  
Keyword(s):  
Economic Growth ◽  
Building Blocks ◽  
Business Environment ◽  
Financial Inclusion ◽  
Capital City ◽  
Medium Size ◽  
Access To Finance ◽  
External Finance ◽  
Reform Strategy ◽  
Lending Rate

This chapter presents a recent survey on the development and accessibility for finance of small and medium-size enterprises (SMEs) in Mongolia. The survey covers a sample of 1922 SMEs from Ulaanbaatar, the capital city, and 21 provinces. We find that banks and local government administrations are the most supportive institutions for SME development. Political instability, corruption, and labour supply, a high lending rate, short maturity loans, and service fees are perceived as the major obstacles that SMEs face in the business environment. Our results also suggest that SMEs in Mongolia are less likely to have access to external finance because of tight credit condition, potentially explaining the lack of SME growth. Implementing country-specific reform strategy for SME development covering key building blocks is needed to promote SME financial inclusion and facilitate SMEs to contribute to the economic growth.

Sign in / Sign up

Export Citation Format

Share Document