IDEAS home Printed from https://ideas.repec.org/a/mth/jebi88/v9y2022i1p23.html
   My bibliography  Save this article

Corporate Finance and Credit Constraints in a Transitional Economy: Insights from Borrowers’ Relations in Mongolia

Author

Listed:
  • Ishii Takaharu

Abstract

This study examines changes in the extent of access to finance in order to ascertain how states that have transitioned from socialist to capitalist regimes have deepened their capitalist systems. To understand the extent of capitalization, it is important to confirm whether there are widespread opportunities for income growth in the country through structural reforms and economic growth since democratization, as access to finance as a safety net for the vulnerable has expanded, especially for the poor, especially in micro-enterprises where many of the poor are employed. This study focuses on micro-enterprises in Mongolia and examines changes over the last 20-25 years since capitalization. The first half of the paper deals with the financing situation of microenterprises, while the second half examines whether microenterprises are experiencing credit constraints through regression analysis. The data were collected by the author in 2011 and 2017, mainly in Ulaanbaatar, the capital of Mongolia.

Suggested Citation

  • Ishii Takaharu, 2022. "Corporate Finance and Credit Constraints in a Transitional Economy: Insights from Borrowers’ Relations in Mongolia," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 9(1), pages 1-23, December.
    • Handle: RePEc:mth:jebi88:v:9:y:2022:i:1:p:23
    as

    Download full text from publisher

    File URL: https://www.macrothink.org/journal/index.php/ijrd/article/download/19401/15282
    Download Restriction: no
    File URL: https://www.macrothink.org/journal/index.php/ijrd/article/view/19401
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sengupta, Rajdeep, 2007. "Foreign entry and bank competition," Journal of Financial Economics, Elsevier, vol. 84(2), pages 502-528, May.
    2. Claessens, Stijn, 2006. "Access to financial services: a review of the issues and public policy objectives," Journal of Financial Transformation, Capco Institute, vol. 17, pages 16-19.
    3. Berger, Allen N. & Udell, Gregory F., 2006. "A more complete conceptual framework for SME finance," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2945-2966, November.
    4. Laura Cojocaru & Evangelos M. Falaris & Saul D. Hoffman & Jeffrey B. Miller, 2016. "Financial System Development and Economic Growth in Transition Economies: New Empirical Evidence from the CEE and CIS Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(1), pages 223-236, January.
    5. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    6. Fafchamps, Marcel, 1996. "The enforcement of commercial contracts in Ghana," World Development, Elsevier, vol. 24(3), pages 427-448, March.
    7. James Barth & Dongyun Lin & Keven Yost, 2011. "Small and Medium Enterprise Financing in Transition Economies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(1), pages 19-38, March.
    8. Lan Archer & Parmendra Sharma & Jen-Je Su, 2020. "SME credit constraints and access to informal credit markets in Vietnam," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(6), pages 787-807, June.
    9. Frederick C. Scherr & Timothy F. Sugrue & Janice B. Ward, 1993. "Financing the Small Firm Start-Up: Determinants of Debt Use," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 3(1), pages 17-36, Fall.
    10. D'Souza, Juliet & Megginson, William L. & Ullah, Barkat & Wei, Zuobao, 2017. "Growth and growth obstacles in transition economies: Privatized versus de novo private firms," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 422-438.
    11. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    12. Doris Neuberger & Maurice Pedergnana & Solvig Räthke-Döppner, 2008. "Concentration of Banking Relationships in Switzerland: The Result of Firm Structure or Banking Market Structure?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 33(2), pages 101-126, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ishii Takaharu, 2022. "Corporate Finance and Credit Constraints in a Transitional Economy: Insights from Borrowers’ Relations in Mongolia," International Journal of Regional Development, Macrothink Institute, vol. 9(1), pages 1-23, December.
    2. James Barth & Dongyun Lin & Keven Yost, 2011. "Small and Medium Enterprise Financing in Transition Economies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(1), pages 19-38, March.
    3. Dimelis, Sophia & Giotopoulos, Ioannis & Louri, Helen, 2015. "Can firms grow without credit?: evidence from the Euro Area, 2005-2011: a quantile panel analysis," LSE Research Online Documents on Economics 61157, London School of Economics and Political Science, LSE Library.
    4. Reto Wernli & Andreas Dietrich, 2022. "Only the brave: improving self-rationing efficiency among discouraged Swiss SMEs," Small Business Economics, Springer, vol. 59(3), pages 977-1003, October.
    5. Bruder, Jana & Neuberger, Doris & Räthke-Döppner, Solvig, 2008. "Financial constraints of ethnic entrepreneurship: Evidence from Germany," Thuenen-Series of Applied Economic Theory 84, University of Rostock, Institute of Economics.
    6. Huang, Shuo, 2022. "Does FinTech improve the investment efficiency of enterprises? Evidence from China’s small and medium-sized enterprises," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 571-586.
    7. Fredriksson, Antti & Moro, Andrea, 2014. "Bank–SMEs relationships and banks’ risk-adjusted profitability," Journal of Banking & Finance, Elsevier, vol. 41(C), pages 67-77.
    8. Philippe Adair & Mohamed Adaskou, 2016. "The determinants of credit rationing of SMEs in France: A disequilibrium model upon a balanced panel [Les déterminants du rationnement du crédit des PME en France : un modèle de déséquilibre sur un," Post-Print hal-01667299, HAL.
    9. Colombo, Massimo G. & Croce, Annalisa & Guerini, Massimiliano, 2013. "The effect of public subsidies on firms’ investment–cash flow sensitivity: Transient or persistent?," Research Policy, Elsevier, vol. 42(9), pages 1605-1623.
    10. Bernini, Michele & Montagnoli, Alberto, 2017. "Competition and financial constraints: A two-sided story," Journal of International Money and Finance, Elsevier, vol. 70(C), pages 88-109.
    11. Sophia Dimelis & Ioannis Giotopoulos & Helen Louri, 2013. "The credit crunch and firm growth in the euro area: 2005-2011. A quantile panel analysis," Working Papers 165, Bank of Greece.
    12. Yong Ma & Yiqing Jiang, 2024. "Digital financial inclusion and corporate investment efficiency: Evidence from small‐ and medium‐sized enterprises in China," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 929-957, August.
    13. Andrea Mina & Henry Lahr, 2018. "The pecking order of innovation finance," LEM Papers Series 2018/31, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    14. Kritikos Alexander & Kneiding Christoph & Germelmann Claas Christian, 2009. "Demand Side Analysis of Microlending Markets in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(5), pages 523-543, October.
    15. Löher, Jonas & Schröder, Christian, 2017. "Einfluss des Regionalbankensystems auf die Mittelstandsfinanzierung," IfM-Materialien 267, Institut für Mittelstandsforschung (IfM) Bonn.
    16. Hottenrott, Hanna & Richstein, Robert, 2020. "Start-up subsidies: Does the policy instrument matter?," Research Policy, Elsevier, vol. 49(1).
    17. Van Campenhout, Geert & Van Caneghem, Tom, 2009. "Information Availability, Information Quality and the Financial Structure of Belgian SME's," Working Papers 2009/27, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    18. Paola Bongini & Annalisa Ferrando & Emanuele Rossi & Monica Rossolini, 2021. "SME access to market-based finance across Eurozone countries," Small Business Economics, Springer, vol. 56(4), pages 1667-1697, April.
    19. Philippe Adair & Mohamed Adaskou, 2020. "Credit Rationing and Mature French SMEs: A Disequilibrium Model," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(1), pages 55-72, June.
    20. Maria Luisa Mancusi & Andrea Vezzulli, 2014. "R&D AND CREDIT RATIONING IN SMEs," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1153-1172, July.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:mth:jebi88:v:9:y:2022:i:1:p:23. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/jebi .

    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.