IDEAS home Printed from https://ideas.repec.org/a/bla/jfnres/v40y2017i4p507-534.html
   My bibliography  Save this article

Bank Financing And Firm Growth: Evidence From Transition Economies

Author

Listed:
  • Barkat Ullah
  • Zuobao Wei

Abstract

We examine the relation between financing patterns and firm growth in transition economies. Using a survey data set covering more than 20,000 firms in 30 Eastern European and Central Asian countries from 2002 to 2014, we find that firms using formal bank finance grow faster than those financed by informal sources. Our results hold after controlling for firm characteristics, country economic development, and potential endogeneity. The effect of bank finance on firm growth is more pronounced in non†OECD than OECD countries, indicating the overwhelming importance of bank finance in countries with less developed institutions.

Suggested Citation

  • Barkat Ullah & Zuobao Wei, 2017. "Bank Financing And Firm Growth: Evidence From Transition Economies," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 40(4), pages 507-534, December.
    • Handle: RePEc:bla:jfnres:v:40:y:2017:i:4:p:507-534
    DOI: 10.1111/jfir.12133
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jfir.12133
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jfir.12133?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Yu & Sah, Nilesh & Ullah, Barkat & Wei, Zuobao, 2020. "Financing patterns in transition economies: Privatized former SOEs versus ab initio private firms," Emerging Markets Review, Elsevier, vol. 43(C).
    2. Liu,Yu & Peng,Mike W. & Wei,Zuobao & Xu,Jian & Xu,L. Colin, 2021. "Organizational Resources, Country Institutions, and National Culture behind Firm Survival and Growth during COVID-19," Policy Research Working Paper Series 9633, The World Bank.
    3. Cuong, Ly Kim & Hau, Hoang Tran, 2021. "Does innovation promote access to informal loans? Evidence from a transitional economy," Finance Research Letters, Elsevier, vol. 40(C).
    4. Wellalage, Nirosha Hewa & Fernandez, Viviana, 2019. "Innovation and SME finance: Evidence from developing countries," International Review of Financial Analysis, Elsevier, vol. 66(C).
    5. Iman Cheratian & Saleh Goltabar & Hassan Gholipour Fereidouni & Mohammad Reza Farzanegan, 2023. "External Financing and Firm Growth: Evidence from Micro, Small, and Medium Enterprises in Iran," MAGKS Papers on Economics 202308, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Cheratian, Iman & Goltabar, Saleh & Gholipour, Hassan F. & Farzanegan, Mohammad Reza, 2024. "Finance and sales growth at the firms level in Iran: Does type of spending matter?," Research in International Business and Finance, Elsevier, vol. 67(PB).
    7. Liu, Yu & Xu, Jian, 2022. "Residual state ownership, foreign ownership and firms' financing patterns," Emerging Markets Review, Elsevier, vol. 51(PA).
    8. Ullah, Barkat, 2021. "Does innovation explain the performance gap between privatized and private firms?," Journal of Economics and Business, Elsevier, vol. 113(C).
    9. Ullah, Barkat, 2019. "Firm innovation in transition economies: The role of formal versus informal finance," Journal of Multinational Financial Management, Elsevier, vol. 50(C), pages 58-75.
    10. Xu, Jian & Liu, Yu & Abdoh, Hussein, 2022. "Foreign ownership and productivity," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 624-642.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jfnres:v:40:y:2017:i:4:p:507-534. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sfaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.