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Financial Inclusion And Firm Growth In Asean-5 Countries: A New Evidence Using Threshold Regression

Author

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  • Nizam, Rosmah
  • Karim, Zulkefly Abdul
  • Sarmidi, Tamat
  • Rahman, Aisyah Abdul

Abstract

This paper investigates the effect of financial inclusion on a firm's growth (889 firms) in the ASEAN-5 (Malaysia, Thailand, Philippines, Indonesia, and Vietnam) countries using a cross-section threshold estimation technique. This paper showed a non-monotonic effect on financial inclusion-firm's growth nexus. The impact of financial inclusion on firm growth is significantly negative after a certain threshold point is reached. These findings suggest that the firm's owner and banking institutions should deepen their financial inclusion efforts and limit credit access distribution within the optimum value or threshold level.

Suggested Citation

  • Nizam, Rosmah & Karim, Zulkefly Abdul & Sarmidi, Tamat & Rahman, Aisyah Abdul, 2021. "Financial Inclusion And Firm Growth In Asean-5 Countries: A New Evidence Using Threshold Regression," Finance Research Letters, Elsevier, vol. 41(C).
    • Handle: RePEc:eee:finlet:v:41:y:2021:i:c:s1544612320316755
    DOI: 10.1016/j.frl.2020.101861
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    More about this item

    Keywords

    Financial inclusion; firm growth; threshold estimation; ASEAN-5;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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