Financial constraints of firms and bank characteristics

Nozawa, Wataru; Managi, Shunsuke

doi:10.1016/j.eap.2019.10.002

Cited by 6 publications

(7 citation statements)

References 24 publications

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“…Thus, these are critical to enabling SMEs to implement change to mitigate the impact of environmental taxes, thereby sustaining competitive prices to ensure that product demand is not adversely affected (Bergner et al, 2017;Nozawa and Managi, 2019). Hence, SMEs with access to financial resources can reduce gas emissions, invest in clean technology, maintain market share, build an eco-friendly brand, and reduce gas emissions to safeguard the environment.…”

Section: A Theoretical Frameworkmentioning

confidence: 99%

Environmental Tax, SME Financing Constraint, and Innovation: Evidence From OECD Countries

Tingbani

Salia

Hussain

et al. 2023

IEEE Trans. Eng. Manage.

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This paper examines the impact of environmental tax on SME innovation and how SME financing constraint moderates this relationship. Given the paucity of research on the implications of financing constraints on SMEs' green innovative activities, the study adopts cross-country panel data to investigate the impact of environmental tax on SME's innovative activities across 24 OECD countries for the period 2000-2019. Results from our study indicate that an increase in environmental tax leads to a decrease in SME innovation. Further, we also find that financing constraint positively moderates the relationship between environmental tax and SME innovation. Our findings shed new light on the theoretical and practical implications of financing constraints on SMEs' green innovative activities. Managerial Relevance StatementThis paper aims to create awareness amongst managers of the implication of environmental tax on SMEs financing constraints, thereby requiring managerial decisions and strategies to avoid attracting environmental taxes to help them innovate. Thus, the results of this papers will assist SMEs managers in responding to the impact of environmental taxes by pursuing policies that mitigate the impact of environmental taxes. Besides, evidence of how SMEs' financing constraint moderates the relationship between environmental tax and SMEs' innovation has been provided in this paper to guide managers.

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Section: A Theoretical Frameworkmentioning

confidence: 99%

Environmental Tax, SME Financing Constraint, and Innovation: Evidence From OECD Countries

Tingbani

Salia

Hussain

et al. 2023

IEEE Trans. Eng. Manage.

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“…A similar approach was applied by Srinivasan and Thampy (2017), Berger et al. (2017) and Nozawa and Managi (2019) in other countries.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…In this context, Behr et al (2013) identified that loans obtained from saving banks (more specifically, local state-owned banks) could reduce the financial constraints of German firms. A similar approach was applied by Srinivasan and Thampy (2017), Berger et al (2017) and Nozawa and Managi (2019) in other countries. Srinivasan and Thampy (2017) found empirical evidence that having an exclusive relationship with government-owned banks contributes to reducing the financial constraints of Indian firms.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…In other words, since creditors can have, according to Lou and Otto (2020), different (1) investment horizons; (2) relationships with borrowers and (3) rights over firms' cash flow, it is possible to conjecture that determined sources of financing can have a greater capacity to alleviate the financial constraints of some firms. This issue has been addressed in studies such as those of Behr et al (2013), Berger et al (2017), Srinivasan and Thampy (2017) and Nozawa and Managi (2019).…”

Section: Introductionmentioning

confidence: 99%

“…The results of Berger et al (2017) pointed out that credit from small banks has comparative advantages in reducing United States (US) small businesses' financial constraints. Finally, Nozawa and Managi (2019) identified evidence that credit unions are more likely to reduce the financial constraints of small and midsized Japanese firms than banks.…”

Section: Introductionmentioning

confidence: 99%

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Effect of debt structure concentration on the investment–cash flow sensitivity of Brazilian companies

Eça

Júnior²,

Valle

2022

IJMF

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PurposeThis paper aims to analyze whether a relationship exists between the debt structure concentration and investment–cash flow sensitivity of Brazilian companies.Design/methodology/approachThe study is based on a sample of 500 Brazilian firms (337 unlisted and 163 listed) in the 10-year period from 2010 to 2019 analyzed according to the investment–cash flow sensitivity model.FindingsThe results show evidence that companies with more concentrated debt structures tend to have lower investment sensitivity to internal cash flow. In other words, firms with a greater concentration of debts tend to have less investment–cash flow sensitivity. In general, the results are robust to (1) variation of the debt concentration proxy and the independent variable; (2) the control of fixed effects in different dimensions and (3) use of estimator for endogeneity treatment, i.e. two-stage least squares (2SLS) and generalized method of moments (GMM).Originality/valueVarious studies have investigated whether specific financing sources reduce financial constraints, but few have addressed the relationship between debt concentration and these constraints. Besides this, to the best of the authors’ knowledge, no previous study has investigated the mentioned relationship in a sample of unlisted firms. This analysis is relevant since the effects of financial constraints tend to be stronger on companies that have restricted access to the capital market.

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Risk contribution to deposit insurance: Evidence from commercial and cooperative banks in the Eurozone

Gómez Fernández-Aguado,

Partal Ureña,

Trigo Martínez

2024

Economic Analysis and Policy

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Financial constraints of firms and bank characteristics

Cited by 6 publications

References 24 publications

Environmental Tax, SME Financing Constraint, and Innovation: Evidence From OECD Countries

Environmental Tax, SME Financing Constraint, and Innovation: Evidence From OECD Countries

Effect of debt structure concentration on the investment–cash flow sensitivity of Brazilian companies

Risk contribution to deposit insurance: Evidence from commercial and cooperative banks in the Eurozone

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