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Relaxing the Financial Constraint: The Impact of Banking Sector Reform on Firm Performance - Emerging Market Evidence from Turkey

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Listed:
  • Can Erbil
  • Kit Baum
  • Ferhan Salman

Abstract

We examine the impact of banking reform and financial crisis of 2001 on non-financial firm dynamics. Our analysis integrates the two lines of literature on financial liberalization, banking reform and access to capital and banking competition, which were addressed earlier by Bertrand, Schoar and Thesmar (2007) and Cetorelli and Strahan (2006). Our unique firm level survey data from Turkey sheds light on market structure and firm performance. We find that increased banking competition for credit along with banking concentration and financial crisis severely affects access to capital. Moreover, this effect is more pronounced with varying firm size. See above See above

Suggested Citation

  • Can Erbil & Kit Baum & Ferhan Salman, 2013. "Relaxing the Financial Constraint: The Impact of Banking Sector Reform on Firm Performance - Emerging Market Evidence from Turkey," EcoMod2013 5674, EcoMod.
    • Handle: RePEc:ekd:004912:5674
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    References listed on IDEAS

    as
    1. Nicola Cetorelli & Philip E. Strahan, 2006. "Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets," Journal of Finance, American Finance Association, vol. 61(1), pages 437-461, February.
    2. Marianne Bertrand & Antoinette Schoar & David Thesmar, 2007. "Banking Deregulation and Industry Structure: Evidence from the French Banking Reforms of 1985," Journal of Finance, American Finance Association, vol. 62(2), pages 597-628, April.
    3. Aysan, Ahmet Faruk & Ceyhan, Sanli Pinar, 2006. "Why Do Foreign Banks Invest In Turkey?," MPRA Paper 5491, University Library of Munich, Germany.
    4. Papaioannou, Elias, 2007. "Finance and growth: a macroeconomic assessment of the evidence from a European angle," Working Paper Series 787, European Central Bank.
    5. Aykut Kibritcioglu, 2005. "Banking Sector Crises and Related New Regulations in Turkey," Macroeconomics 0505006, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Turkey; Finance; Finance;
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