Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies

Bose, Udichibarna; MacDonald, Ronald; Tsoukas, Serafeim

doi:10.1016/j.jcorpfin.2016.09.008

Cited by 37 publications

(22 citation statements)

References 42 publications

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“…In the same vein, Bougheas et al (2006) show that financial constraints are higher for firms with low expected financial performance during periods of tight monetary policy compared to periods with loose monetary policy. In a related study, Bose et al (2016) find that firms with higher financial performance gained better access to long-term debt as a result of the policy intervention that aimed to broaden the bond markets in emerging Asian economies after the 1997-1998 Asian financial crisis. We thus propose the following hypotheses: H10: Firms that make a profit are more likely than firms that make a loss to have a positive perception of bank financing accessibility.…”

Section: Profitabilitymentioning

confidence: 97%

“…Profitability is posited to positively affect access to bank loans because the generation of high cash flows lowers the likelihood that loans will not be repaid (Ferrando & Mulier, 2013). Several studies show that profitable firms have easier access to bank loans than less profitable firms (e.g., Bose, MacDonald, & Tsoukas, 2016;Bougheas, Mizen, & Yalcin, 2006;Quartey, Turkson, Abor, & Iddrisu, 2017). The industry in which a firm operates is likewise expected to affect financing constraints.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market

Erdogan

2019

Economic Research-Ekonomska Istraživanja

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To contribute to the small and medium-sized enterprises (SMEs) financing literature, this paper uses a unique sample of 492 Turkish SMEs to analyse the firm-level determinants of SME perceptions of bank financing accessibility. Logistic regression results reveal that older and relatively more innovative firms are more positive about their ability to secure bank loans, as are SMEs that have longer relationships with their oldest banks. Firms with two owners are more inclined than firms with a single owner and firms with three or more owners to perceive accessing bank loans as easy. This finding signals that although bank loan applications of firms with two owners have higher credibility than those of firms with a single owner, having more than two owners creates more complex agency problems for banks. Compared with firms incurring a loss, firms that make a profit or break even perceive it to be easier to obtain bank financing. SMEs in the service industry are more positive about accessing bank loans than are firms in manufacturing and other industries.

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Section: Profitabilitymentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market

Erdogan

2019

Economic Research-Ekonomska Istraživanja

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“…Companies can increase their source of funds by selling their company ownership in the capital market. The funds obtained are for longterm use to optimize and improve their business performance (Bose, MacDonald, & Tsoukas 2019). The company should then strive to maintain and increase investor confidence by giving their best performance in the market including the Islamic stock market (Abdulkarim, Akinlaso, Hamid, & Ali 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Pandemic Attack and Islamic Stocks Index: A Cross Country Analysis

Mubarok¹,

Arif²

2021

JEM

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The impact of Covid-19 has triggered the current global economic downturn affecting all aspects of the economy including the Islamic stock index. This study aims to determine the model for forecasting the index. The Islamic stock index is used in six countries through adopting the Autoregressive Conditional Heteroscedasticity -Generalized Autoregressive Conditional Heteroscedasticity (ARCH-GARCH) method on daily data over the period January 2020 to October 2020. The risk level of each index was found to be influenced by the residual value from the previous day. The forecasting revealed the tendency of all stock prices to decline. These are associated with impacts of the Covid-19 pandemic on current and future economic performance. Investors need to assess the sector's fundamentals and the individual stocks in question, that are potential winners with propensity to recover and grow well once the market rebounds. They also need to continuously track the development of the pandemic in tandem with the economic sector and thus make the necessary adjustments at every step of the investment process.

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“…Following Mizen and Tsoukas (2010) and Bose, MacDonald and Tsoukas (2019) we include controls for rm size, investment scaled by total assets, leverage, protability, tangible assets (collateral). 13 We allow for a rm being a previous issuer of a domestic or foreign bond to separate those rms that are previous issuers from new entrants to the market.…”

Section: P R(bonmentioning

confidence: 99%

Original sin in corporate finance: New evidence from Asian bond issuers in onshore and offshore markets

Mizen

Packer²,

Remolona

et al. 2021

Journal of International Money and Finance

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In this paper, we focus on the surprising phenomenon in which rms face diculty issuing in domestic currency even in the home market, especially in emerging markets.Could this be due to original sin which has been familiar to sovereign bond issuance?In its new incarnation, original sin refers to the diculty rms in many emerging markets have in borrowing domestically long-term, even in the local currency. We infer the nature of original sin from 5,901 nancing decisions by rms in seven Asian emerging markets over a period of 20 years. Our sample period covers an episode when bond issuers had a choice between a less developed but growing onshore market, which varied across countries in the level of development, and a deep and liquid oshore market. We nd that even in countries with onshore markets, it is often easier for unseasoned rms to issue oshore (in foreign currency) than to issue onshore, but changes in market development reverses this eect. In addition, once such a rm becomes a seasoned issuer, it is absolved from domestic original sin and is then able to act opportunistically and go to the market favored by interest dierentials.

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Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies

Cited by 37 publications

References 42 publications

Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market

Determinants of perceived bank financing accessibility for SMEs: evidence from an emerging market

Pandemic Attack and Islamic Stocks Index: A Cross Country Analysis

Original sin in corporate finance: New evidence from Asian bond issuers in onshore and offshore markets

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