How do neighboring peer companies influence SMEs’ financial behavior?

Maté‐Sánchez‐Val, Mariluz; Hernández, Fernando A. López; Mur-Lacambra, Jesús

doi:10.1016/j.econmod.2017.01.023

Cited by 13 publications

(6 citation statements)

References 59 publications

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“…Differently, lnRES has a significantly negative influence on the peer effect, perhaps because those banks with large reserves already have their own lending strategies. It is worth noting that lnTA and lnDEP do not impact the peer effect in contrast to the findings in some previous studies (e.g., Leary & Roberts, 2014; Maté‐Sánchez‐Val et al, 2017).…”

Section: Empirical Analysiscontrasting

confidence: 99%

Peer effect, bank concentration, and crises: Evidence from the United States

Zeng,

Lin

2023

Manage Decis Econ

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This research analyzes the impact of banks' peer effect in lending on the bank concentration‐crisis nexus for the period 2015–2021 in the United States. The analysis finds that a high level of bank concentration increases a crisis via the channel of banks' peer effect in lending, to which the imitative behavior of big banks is deemed to be the cause of deteriorating the damage of bank concentration on the stability of the banking sector. The results propose policy implications and what banks should do when treating financial market sustainability as their duty on the environmental, social, and governance (ESG) issues.

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Section: Empirical Analysiscontrasting

confidence: 99%

Peer effect, bank concentration, and crises: Evidence from the United States

Zeng,

Lin

2023

Manage Decis Econ

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“…Likewise, Joo, Yang, and Yang (2016) observe that peer firms cash ratio influences a firm's cash holding decisions among Korean manufacturing firms. Small and medium enterprises (SME) in Spain, show that peers' geographical closeness affects these firms' financial decisions such as profitability, liquidity, and indebtedness (Maté-Sánchez-Val, López-Hernández, & Mur-Lacambra, 2017). Evidence from financial sector also verify the importance of peers in the banking industry in countries outside the U.S. Like, Malik, Mamun, and Amin (2018), find a link between bank's corporate social responsibility (CSR) activities expenses and its peers CSR expenditures in Bangladesh.…”

Section: Literature Review Peer Effects In Financementioning

confidence: 95%

Peer effects, Financial Decisions and Industry Concentration

Zaighum

Karim

2019

SJOM

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Purpose- This article reviews literature related to peer effects and different financial decisions. It further summarizes the theory and motives that drive peer effects. Also, the study highlights the influence of industry concentration on peer interaction in financial decision making. This content analysis of scantily available peer effect literature has been performed to highlight the significance of peer effects in financial decision making like investment, cash holding, leverage and many more. Most of the existing peer effects literature focuses on the U.S. However, peer effects also occur in other countries but empirical evidence is comparatively limited. But, managers may take into consideration their industry peers especially if their firms are operating in highly competitive environments. Design/Methodology- Content analysis approach is applied to review prevailing financial literature on peer interactions and financial decisions with a special focus on industry concentration in explaining the peer effects. Practical Implications- As the prime focus of managerial decisions is to maximize the firm’s value. Hence, information about peers would be helpful in making better decisions, especially in highly competitive environments. Also, this review of selected literature provides pathways for future research in investigating the motives of peer effects.

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“…In contrast, large-scale companies can gain corporate advantages in activities such as R&D and market development, and some expect that productivity will be high due to the active division of labor within the company (Raspe and van Oort, 2011); it should be noted that this is an area of contention (Huggins and Johnston, 2010). However, since many studies consider the size of a company as a variable that reflects regional economic development (Maté-Sánchez-Val et al, 2017), it was used as a predictor variable in this study. Human capital levels were also considered; Duranton and Puga (2014) reviewed past urban development cases and found that human capital was critical for urban growth.…”

Section: Methods and Datamentioning

confidence: 99%

Discontinuities in regional economic development due to administrative boundaries: Examining the mechanisms of the boundary effect

Jeong

2023

Environment and Planning B: Urban Analytics and City Science

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Although administrative boundaries are non-physical, they can cause regional inequalities through boundary effects that result in discontinuities between areas. The boundary effect refers to the disparities in policy, economic, and social aspects between areas caused by administrative boundaries, which can lead to regional differences. This study aims to identify the mechanisms that induce discontinuities in regional development due to administrative boundaries. The boundary effect mechanism assumed to include the spillover, fragmentation, and hierarchy effects were examined using six scenarios, each modeled using a spatial economic model. Through the comparison of various scenarios, we have demonstrated the potential validity of the three components comprising the assumed boundary effect. Furthermore, we have confirmed that the model incorporating all effects that we assumed in our research, namely spillover, fragmentation, and hierarchy effects, provides the best fit. We hypothesized and verified the mechanism of boundary effects that disrupt regional development, thereby enhancing the understanding of these effects.

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How do neighboring peer companies influence SMEs’ financial behavior?

Abstract: Acknowledgments We gratefully acknowledge the contribution of three anonymous reviewers in helping us improve the quality of this paper. Prof. Fernando A. López and Mariluz Maté thanks the financial support offered by the project from

Cited by 13 publications

References 59 publications

Peer effect, bank concentration, and crises: Evidence from the United States

Peer effect, bank concentration, and crises: Evidence from the United States

Peer effects, Financial Decisions and Industry Concentration

Discontinuities in regional economic development due to administrative boundaries: Examining the mechanisms of the boundary effect

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