Impact of financial development and credit information sharing on the use of trade credit: Empirical evidence from Pakistan

Ahmad, Nisar; Nazir, Mian Sajid; Nafees, Bilal

doi:10.1080/23322039.2018.1483466

Cited by 17 publications

(12 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The results implied that CIS had insignificant moderating effect on the relationship between financial statement lending and access to financial services among the SMEs in Kenya. This findings are in line with Ahmad et al (2018) that credit information sharing has a negative relationship with credit access. Similarly Bos, de Haas and Millone (2016) discovered that SMEs increased loan rejection in Herzegovina and Bosnia arose from tightening of credit terms by banks as a result of CIS.…”

Section: Moderating Effect Of Cis On the Relationship Between Financial Statement Lending And Access To Financial Services By Small And Msupporting

confidence: 91%

“…CIS led to falling of nonperforming loans and increase to loan access because of CIS influence on reducing corruption information asymmetry. In a study by Ahmad, Nazir and Nafees (2018) on trade credit influence by CIS and financial development by listed manufacturing firms in Pakistan. Time frame of the study was 2005-2015 on 327 enterprises employing panel model dynamic in nature.…”

Section: Empirical Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Financial Statement Lending, Credit Information Sharing and Access to Financial Services by Small and Medium Enterprises in Kenya

Kiring’a¹,

Ndede²,

Wekesa³

2021

RJFA

View full text Add to dashboard Cite

Policy makers and scholars acknowledge the significance of small and medium enterprises in stirring the economic growth and development in developing and developed economies. In spite of the generally fast pace by which access to financial services for small and medium enterprises is being established, significant segments of the small and medium enterprises sector do not yet benefit from the expansion. This study therefore investigated the effect of financial statement lending on access to financial services by small and medium enterprises in Kenya. The study further sought to establish the moderating effect of the credit information sharing on the relationship between financial statement lending and access to financial services by small and medium enterprises in Kenya. The study was based on Financial Intermediation Theory and information asymmetry theory. The target population comprised 4,253 small and medium enterprises in Kenya. A sample size of 366 SMEs was target by the study. The study adopted multistage sampling technique to obtain the SMEs respondents. Primary data was utilized and was acquired through semi-structured questionnaires. Data was analysed using descriptive and inferential statistics. Heckman two step selection model was applied in regression analysis. The findings of regression analysis show that financial statement lending had a positive and significant effect on access to financial services among SMEs in Kenya. The results established that credit information sharing had insignificant moderating effect on the relationship between financial statement lending and access to financial services among the SMEs in Kenya. The study concluded that financial statements play a critical role in ensuring small and medium enterprises access financial services. Lenders can determine the financial position of the business by analysing their cashflow in order to be able to advance the credit that the business is able to pay based on their financial statement.

show abstract

Section: Moderating Effect Of Cis On the Relationship Between Financial Statement Lending And Access To Financial Services By Small And Msupporting

confidence: 91%

Section: Empirical Reviewmentioning

confidence: 99%

Financial Statement Lending, Credit Information Sharing and Access to Financial Services by Small and Medium Enterprises in Kenya

Kiring’a¹,

Ndede²,

Wekesa³

2021

RJFA

View full text Add to dashboard Cite

show abstract

“…With the IMF program's assistance, the government endured the jolt and achieved handsome economic growth in the coming years. However, it is the pioneer study in Pakistan, especially when the country experienced liquidity crises while the capital market demonstrated higher growth (Ahmad, Nazir & Nafees, 2018). From the results of this study, it is established that a statistically significant relationship exists between the IMF lending news and stock market performance.…”

Section: Discussionmentioning

confidence: 71%

Impact of Imf Lending Announcements on the Performance of Stock Market: Empirical Evidence From Pakistan

Azeem

Ahmad

Hussain

et al. 2021

HSSR

Self Cite

View full text Add to dashboard Cite

Purpose of the study: Stock markets have demonstrated varying reactions to IMF lending announcements across various economies. Announcements offered by IMF often be perceived negatively by the participants of the stock market, because of stringent conditions accompanied with the loan that may oppose the political and economic agenda of a borrowing nation. Thus, this study intends to investigate the impact of IMF’s announcements about extending loans to Pakistan on the performance of the Stock market in the debt-ridden economy. Methodology: For regular returns from 1997 to 2017, the benchmarking indexes of KSE-100 and 30 were used. Meanwhile, IMF lending arrangements are categorized into three respective dummies (standby, extended credit facility, and extended fund facility). The Generalized Autoregressive Conditional Heteroscedastic (GARCH) model was used to investigate the effect of IMF’s lending news on the regular stock returns. Main findings: The results show a statistically significant effect of the IMF’s News about lending arrangements on the performance of the stock market in Pakistan. Surprisingly, the negative effect of IMF lending announcements on the performance of the stock market in Pakistan implies that the loans extended by IMF are not professed by speculators as good for the economic performance of the economy. Application of this study: The findings of this study imply that simply extending loans is not a panacea for politically unstable and financially ruined nations. Lending strategies of IMF need to be favourable for the political and economic conditions of a borrowing country. Originality/ Novelty: As for as the novelty is concerned, the study has highlighted the time-varying impact of IMF lending announcements on the performance of the stock market in a financially fragile country where a newborn government facing multiple challenges has made its best effort to avoid borrowing from IMF.

show abstract

“…Conversely, under organic restrictions, firms would rely on suppliers for financing their inventory (Hill et al, 2017). Effectively, during a crisis, TC becomes a crucial source of finance even for publicly listed firms in emerging economies (Abdulla et al, 2017;Ahmad et al, 2018). However, such behaviour by large firms contradicts the financing theory explaining the motives of TC.…”

Section: Qrfm 124mentioning

confidence: 99%

Research on trade credit – a systematic review and bibliometric analysis

Pattnaik

Kumar

Vashishtha

2020

QRFM

View full text Add to dashboard Cite

Purpose Trade credit (TC) is a financing provision by non-financing firms. The multi-disciplinary research field has sustained scholarly attention for long. Pursuant to the gap for a comprehensive summary of the literature confined to the areas of Finance and Economics, this study aims to provide quantitative and qualitative insights not fully captured or analysed in previous reviews. Design/methodology/approach Contextualized systematic literature review (SLR) and bibliometric techniques are used to map the thematic, intellectual and conceptual structures latent in 138 articles published in top journals. Findings The top authors, top journals and major themes are recognized using bibliometric techniques followed by an in-depth bibliographic-network-based-content-analysis. Five major clusters indicating the five research dimensions within the specialized field are identified and extensively reviewed. Empirical validation of key theories is discussed in the contents and a conceptual model is developed. Finally, the study has identified key research gaps to set the direction for future research. Research limitations/implications The scope of the literature selection is confined to the areas of finance and economics. Future studies could elaborate on a broader perspective. Originality/value The study contributes by offering a conceptual model latent in the literature on TC. It derives major research gaps to set the direction of future research. Also, the combination of SLR and bibliometrics is a methodological contribution in this research domain.

show abstract

Impact of financial development and credit information sharing on the use of trade credit: Empirical evidence from Pakistan

Cited by 17 publications

References 42 publications

Financial Statement Lending, Credit Information Sharing and Access to Financial Services by Small and Medium Enterprises in Kenya

Financial Statement Lending, Credit Information Sharing and Access to Financial Services by Small and Medium Enterprises in Kenya

Impact of Imf Lending Announcements on the Performance of Stock Market: Empirical Evidence From Pakistan

Research on trade credit – a systematic review and bibliometric analysis

Contact Info

Product

Resources

About