Access to finance and productivity growth: the role of own and suppliers’ financial constraints

Bağır, Yusuf Kenan; Seven, Ünal

doi:10.1007/s00181-022-02238-0

Cited by 4 publications

(3 citation statements)

References 33 publications

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“…Financial constraints lead to higher cash holdings and fewer innovations (Habib et al, 2021). There is also a strong connection between the attributes of the firm's owner and cash flow constraints (Bağır and Seven, 2021). The firm's decision to invest is also dependent on the financial behavior of the firm (de Guevara et al, 2021).…”

Section: Financial Constraintsmentioning

confidence: 99%

The Role of Moderators on Product Quality and Export Flows: The Case of Pakistan

Saeed,

Haq,

Bhatti

2024

J. Econ. Impact

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High-quality products are always in demand for both local and international markets. The demand for such products can be increased by the product sales at a domestic level. It can also be helpful to increase the export flows of an economy and hence improve the trade flows. Other factors have a moderating role in determining the relationship between export product quality and trade flows. The objective of this study is to examine the role of moderating variables, which are used to check the strength of the above relationship. There are three variables: financial constraints, firm heterogeneity, and R&D activities are taken as moderators. For this purpose, the data is taken from annual financial reports of non-financial firms which are listed on the Pakistan Stock Exchange. Also, some country-level data is taken from the Pakistan Economic Survey. The objective of the study was achieved by using panel techniques Fixed Effect, Random Effect Model for the period of 1999 to 2020. It is found that firm heterogeneity and R&D activities have positive and financial constraints have negative but significant effects on strengthening the relationship between product quality and export flows. Based on our findings, the government should provide R&D funds and financial aid programs for new investors to improve product quality and increase their sales in local and international markets.

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Section: Financial Constraintsmentioning

confidence: 99%

The Role of Moderators on Product Quality and Export Flows: The Case of Pakistan

Saeed,

Haq,

Bhatti

2024

J. Econ. Impact

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“…Especially in emerging economies such as Vietnam, small enterprises are more affected by financing constraints [15]. As for firm productivity-a sub-category of firm performancefinancing constraints can reduce the total factor productivity of Chinese firms [18] and hinder the growth of productivity of Turkish firms [17]. The research in India shows that when companies face credit constraints, they often choose to decentralize production outsourcing to increase productivity [8].…”

Section: Related Literature and Development Of Hypotheses 221 The Eff...mentioning

confidence: 99%

“…The effects of financing constraints in emerging markets have been widely investigated by scholars [11,12]. Regarding the consequences of financing constraints, several factors are considered such as firm investment [13,14], firm size [15], and firm performance; including firm growth [12,16], firm productivity [8,17,18], and firm innovation [19,20]. The literature has expanded our understanding of diverse impacts of financing constraints on firms in emerging economies.…”

Section: Introductionmentioning

confidence: 99%

Financing Constraints and Corporate Value in China: The Moderating Role of Multinationality and Ownership Type

2022

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Drawing on institutional theory and agency theory, this study examines the relationship between financing constraints and corporate value in China. In addition, we provide solutions for negative effects of financing constraints on corporate value in China. Chinese firms tend to utilize costly informal institutions to gain legitimacy and necessary resources from external stakeholders. This can lead to Chinese firms’ assuming higher financing transaction costs, negatively influencing corporate value. The multinational strategy of Chinese firms can further increase the financial burden of the company, and agency problems of state-owned enterprises (SOEs) can negatively affect the enthusiasm of managers, exacerbating the restraining effects of financing constraints on corporate value. We empirically analyze the non-financial companies listed on the Chinese stock market from 2011 to 2020 by using the methods of fixed effects and dynamic regression, heterogeneity analysis, and instrumental variables. The results show that financing constraints significantly inhibit corporate value. Accounting for the impact of differing degrees of multinationality and different types of ownership in enterprises, we empirically present the positive moderating effects of multinationality and ownership type in reducing corporate value in circumstances of financing constraints. Finally, we suggest ways for Chinese firms to overcome the negative effects of financing constraints on corporate value.

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Green growth or red tape? Unraveling the interconnected effects of stringent environmental regulations and bribery on enterprise growth

Ullah,

Mazhar

2024

JES

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PurposeExisting research offers mixed findings on the link and does not consider the role of institutional weaknesses, such as corruption, in the effectiveness of these regulations. To address this gap, we analyze the conditional effects of environmental regulations on firm growth across economies with varying perceptions of corruption.Design/methodology/approachWe study the relationship between environmental regulations and firm performance using World Bank Enterprise Surveys data for manufacturing firms in 142 countries covering the 2007–2017 period.FindingsOur findings support the “strong” version of the Porter Hypothesis, suggesting that stricter environmental regulations significantly enhance firm growth.Research limitations/implicationsHowever, when combined with high levels of bribery, these regulations have an adverse effect.Originality/valueThe robustness of these results is confirmed by employing various statistical techniques (e.g. IV-GMM) and alternative model specifications.

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Access to finance and productivity growth: the role of own and suppliers’ financial constraints

Cited by 4 publications

References 33 publications

The Role of Moderators on Product Quality and Export Flows: The Case of Pakistan

The Role of Moderators on Product Quality and Export Flows: The Case of Pakistan

Financing Constraints and Corporate Value in China: The Moderating Role of Multinationality and Ownership Type

Green growth or red tape? Unraveling the interconnected effects of stringent environmental regulations and bribery on enterprise growth

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