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How different types of financial service providers support small- and medium- enterprises under the impact of COVID-19 pandemic: from the perspective of expectancy theory

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  • Hua Song

    (Renmin University of China)

  • Yudong Yang

    (Renmin University of China)

  • Zheng Tao

    (Renmin University of China)

Abstract

The 2019 novel coronavirus disease (COVID-19) pandemic has significantly impacted several aspects of the society and the economy. A problem that needs prompt attention in this situation is the increasing difficulties faced by small- and medium-sized enterprises (SMEs) in raising capital, which has aroused great concern from multiple stakeholders such as public administrations and regulators. As the major supply of capital, financial service providers (FSPs) play a critical role in financing SMEs. However, how FSPs deal with SME financing during shocks has not yet been fully researched. Accordingly, in this study, a theoretical framework based on expectancy theory is proposed to explore the expected strategic adjustments of FSPs in financing SMEs. Specifically, this study investigates 272 FSPs in China on their expectancy and attitude on financing to SMEs during the COVID-19 pandemic. Furthermore, this study has divided FSPs into three categories: commercial banks, non-bank financial institutions, and credit-enhanced FSPs. Differences among these categories are compared and analyzed.

Suggested Citation

  • Hua Song & Yudong Yang & Zheng Tao, 2020. "How different types of financial service providers support small- and medium- enterprises under the impact of COVID-19 pandemic: from the perspective of expectancy theory," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-27, December.
    • Handle: RePEc:spr:fobric:v:14:y:2020:i:1:d:10.1186_s11782-020-00095-1
    DOI: 10.1186/s11782-020-00095-1
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    Cited by:

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    2. Rubio-Andrés, Mercedes & Ramos-González, Mª del Mar & Sastre-Castillo, Miguel Ángel & Gutiérrez-Broncano, Santiago, 2023. "Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. Juying Zeng & Jiehui Li & Qianqian Yang, 2024. "Policy involvement and policy consistency identification of supportive policies for SMEs," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 2901-2937, December.
    4. Zhou, Chao & Liao, Jinglin, 2024. "Home country digital finance development and post-entry internationalization speed of emerging market SMEs: Empirical evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    5. Giunipero, Larry C. & Denslow, Diane & Rynarzewska, Ania Izabela, 2022. "Small business survival and COVID-19 - An exploratory analysis of carriers," Research in Transportation Economics, Elsevier, vol. 93(C).
    6. Khan, Md. Rahat & Pervin, Most. Tahura & Arif, Md. Zahir Uddin & Hossain, S.M. Khaled, 2024. "The impact of technology service quality on Bangladeshi banking consumers' satisfaction during the pandemic situation: Green development and innovation perspective in banking service," Innovation and Green Development, Elsevier, vol. 3(2).

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