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Determinants of Bank Loan Availability: Evidence From Pakistani Non-Financial Firms

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  • Jaleel Ahmed
  • Jaweria Khalid

Abstract

In this research paper we have investigated the key factors which make it easier for non-financial firms to arrange financing from commercial banks. We have collected the data from the year 2001 to 2011 from 220 non-financial firms in Pakistan. We have used two measures of firm-bank relationship. First, if a non-financial firm has a board of director who is at the same time board of director of a commercial bank. Second, if a commercial bank has an equity stake in a non-financial firm. After using Fixed Effect model we have found that firm-bank relationships always matter for arranging bank loan for non-financial firms in Pakistan.

Suggested Citation

  • Jaleel Ahmed & Jaweria Khalid, 2016. "Determinants of Bank Loan Availability: Evidence From Pakistani Non-Financial Firms," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(59), pages 61-72, March.
    • Handle: RePEc:rej:journl:v:18:y:2016:i:59:p:61-72
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    References listed on IDEAS

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    More about this item

    Keywords

    Commercial Banks; Bank loan availability; Non-financial firms; Pakistani stock market;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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