Democracy and access to finance in developing countries

Farooq, Omar; Aktaruzzaman, Khondker

doi:10.1108/rbf-07-2022-0168

Cited by 6 publications

(3 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

Section: Methodology and The Definition Of Variablesmentioning

confidence: 68%

“…In order to test the relationship between economic uncertainty prevailing in the country and the financing constraints faced by private firms, we estimate various versions of the following ordered logistic regression equation. The methodology used in this paper is consistent with prior literature, such as Farooq and Aktaruzzaman (2022) and Mertzanis (2019).In the above regression equation, the dependent variable (CONSTRAINT) measures the financing constraints faced by private firms. This variable is an ordinal variable that shows the degree to which firms consider the access to finance as a major obstacle for their operations.…”

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

The nexus between economic policy uncertainty and access to finance: a study of developing countries

Farooq

Jabbouri

Naili

2023

IJMF

View full text Add to dashboard Cite

PurposeThis paper attempts to document the effect of economic uncertainty on financing constraints faced by private firms.Design/methodology/approachOrdered logistic regression is used to analyze the data of private firms from 101 developing countries. The data was provided by the World Bank's Enterprise Surveys and was gathered during the period between 2006 and 2019.FindingsThe findings show that firms headquartered in countries with high economic uncertainty face more financing constraints than firms headquartered in countries with low economic uncertainty. The authors argue that the increase in economic uncertainty allows capital providers to adjust their lending decisions by reducing the provision of capital to firms. The paper also shows that firms headquartered in countries with strong institutional infrastructure and well-functioning firms are less likely to be affected by economic uncertainty while accessing finance.Practical implicationsThe findings would help managers, investors, regulators, and policymakers better understand the implication of economic policy uncertainty on the real economy. This study also sheds the light on the importance of minimizing volatility, ambiguity, and randomness in governmental decisions and policies. Regardless of the pertinence of these policies, arbitrariness surrounding their development and communication can limit their effectiveness and produce unwanted effects.Originality/valueThis paper is closely related to prior literature that documents the behavior of credit providers and investors (the supply side) during the periods of economic uncertainty. The authors differ from this strand of literature by taking the perspective of firms – the demand side.

show abstract

Section: Methodology and The Definition Of Variablesmentioning

confidence: 68%

Section: Methodsmentioning

confidence: 99%

The nexus between economic policy uncertainty and access to finance: a study of developing countries

Farooq

Jabbouri

Naili

2023

IJMF

View full text Add to dashboard Cite

show abstract

“…Либерализация способствует ликвидности фондовых рынков (Bui, Bui, 2020), снижает стоимость капитала (Ashraf et al, 2021) и повышает капитализацию компаний (Mendelson, Amihud, 1986). Демократизация повышает доступность источников финансирования (Farooq, Aktaruzzaman, 2022), одновременно содействуя экономическим и предпринимательским свободам (Uzelac et al, 2020). В странах с развивающейся экономикой для достижения позитивных повышение экономических свобод должно происходить одновременно с увеличением качества других институтов (Aman et al, 2022;Полтерович и др., 2008).…”

Section: государственное регулирование открытость и инвестицииunclassified

Regulating pension fund investments and the impact of global shocks (evidence of COVID-19)

Nepp

2024

LEJ

View full text Add to dashboard Cite

The relevance of the article is due to the introduction since 01.01.2024 in the Russian Federation of a long-term savings program for citizens as a substitute for the funded part of pension frozen since 2014. The main reason for the freeze was inefficiency of the saving system, namely negative real investment returns. In the article, we consider the activities of state regulator for regulating investment activities of pension funds and its contribution to the effectiveness of long-term saving program being introduced for citizens and whether the created system will be resistant to external shocks such as COVID-19. Applying Markovitz portfolio modeling to leading international stock indices and comparing the results with the data of pension savings investment in the Russian Federation, the article provides findings concerning the need to change the principles of state regulation of pension savings investment in terms of easing geographical and instrumental restrictions. Building on the findings of Nepp et al. (2022) on short-term nature of COVID-19 impact on financial markets, we apply a differential equation in the Cauchy form, used in physical processes for the research impulse effects, to determine the impact of a short-term external shock on the example of the coronavirus pandemic on funded pension systems. It is proved that in case of a long saving period, significantly exceeding the duration of the influence of an external shock, its impact on funded pension systems can be neglected.

show abstract

Natural resource rents and access to finance

Khan,

Khan

et al. 2023

Journal of Multinational Financial Management

View full text Add to dashboard Cite

Democracy and access to finance in developing countries

Cited by 6 publications

References 33 publications

The nexus between economic policy uncertainty and access to finance: a study of developing countries

The nexus between economic policy uncertainty and access to finance: a study of developing countries

Regulating pension fund investments and the impact of global shocks (evidence of COVID-19)

Natural resource rents and access to finance

Contact Info

Product

Resources

About