Financial Constraints and Product Market Decisions: The Role of Production Cycles

Purpose- The aim of the study is to investigate the impact of financial constraints on firm performance. The role of financial development in reducing financial constraints is also investigated. Design/methodology/approach- Data from two waves of World Bank Enterprise Surveys from 2007 to 2013 was used to construct the required variables. A balanced sample of 427 firms was selected and a fixed-effect model was used for empirical estimations. Findings- The findings indicate the significance of access to finance in terms of explaining firm performance. Improvement in access to finance led to subsequent improvement in firm performance as measured by labour productivity. The role of financial development in reducing credit constraints is not as expected. The concentration of lending to the private sector in the hands of large corporations at the expense of small and medium enterprises could be the reason for such a result. Originality/value – Most of the work in this area is focused on large listed firms. The present study focused primarily on small and medium-sized enterprises in Pakistan. Multiple measures of financial constraints and firm performance were used for robustness. The investigation also covers the role of financial development and its microeconomic implications at the level of an enterprise.

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Financial capital, constraints, partners, and performance: An empirical analysis of Indonesia SMEs

JEMA Jurnal Ilmiah Bidang Akuntansi dan Manajemen ◽

10.31106/jema.v18i2.11318 ◽

2021 ◽

Vol 18 (2) ◽

pp. 210

Author(s):

I Wayan Widnyana ◽

I Made Dauh Wijana ◽

Almuntasir Almuntasir

Keyword(s):

Financial Performance ◽

Financial Constraints ◽

Small And Medium Enterprises ◽

Value Added ◽

Financial Capital ◽

Moderation Effect ◽

And Performance ◽

Medium Enterprises ◽

The Relationship

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.

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Does Acquisition Trigger Follow-up Acquisitions? The Role of Relative Financial Constraints

SSRN Electronic Journal ◽

10.2139/ssrn.3755161 ◽

2020 ◽

Author(s):

Dongxu Li

Keyword(s):

Financial Constraints

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FDI and Firm Productivity in Host Countries: The Role of Financial Constraints

SSRN Electronic Journal ◽

10.2139/ssrn.3776807 ◽

2021 ◽

Author(s):

Wontae Han ◽

Jian Wang ◽

Xiao Wang

Keyword(s):

Financial Constraints ◽

Firm Productivity ◽

Host Countries

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Conclusion

10.1093/oso/9780192898074.003.0009 ◽

2021 ◽

pp. 213-244

Author(s):

Leonardo R. Arriola ◽

Martha C. Johnson ◽

Melanie L. Phillips

Keyword(s):

Political Participation ◽

Burkina Faso ◽

Case Studies ◽

Financial Constraints ◽

Future Research ◽

National Politics ◽

African Countries ◽

Gendered Institutions ◽

The Impact

The concluding chapter revisits the main hypotheses regarding women’s experiences as aspirants, candidates, and legislators. Complemented by tables summarizing key findings, the chapter identifies where and how the book’s studies of Benin, Burkina Faso, Ghana, Kenya, Malawi, Namibia, Uganda, and Zambia either uphold or contradict hypotheses from the existing literature. Building on this summary, the chapter presents an agenda for future research on women’s political participation in African countries focused on the importance of financial constraints for women’s candidacies, the role of violence in shaping women’s political options, and the impact women in power have on gendered institutions. The book ends on an optimistic note, arguing that despite these barriers, the case studies clearly demonstrate that women are adept at securing a place for themselves, and asserting their voice, in local and national politics.

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