Capital market deepening, Governor’s characteristics and Russian regional enterprises: A big data analysis

Kazi Sohag; Tomas Kliestik; S.M. Riad Shams; Oleg Mariev; Natalia Davidson

doi:10.1016/j.jbusres.2022.05.035

Capital market deepening, Governor’s characteristics and Russian regional enterprises: A big data analysis

Kazi Sohag^*, Tomas Kliestik, S.M. Riad Shams, Oleg Mariev, Natalia Davidson

^*Corresponding author for this work

Marketing, Operations and Systems

Research output: Contribution to journal › Article › peer-review

Abstract

We measure the impact of the bank credit disbursement on Micro, Small and Medium Enterprises (MSME) growth, incorporating the role of regional governors’ characteristics in the case of 84 regions of the Russian Federation. Given the considerable heterogeneity across regions, time and reverse causality, we applied the Panel Quantile Regression via Moments (MM-QR) approach to analyze monthly frequency big data (2016M1–2021M1). Our empirical investigation demonstrates that bank credit disbursement and MSME growth follow a non-monotonic relation, implying that up to the specific size of the credit is detrimental, but after surpassing the threshold size, it is supportive to MSME growth under each quantile. Regional governors’ political and economic liaison with the federal government impede MSME growth under different quantiles of MSME growth. Our findings further infer that credit market deepening along with firms’ individual characteristics are crucial for enterprise performance in the current time of digital transformation. We provide several policy implications.

Original language	English
Pages (from-to)	340-352
Number of pages	13
Journal	Journal of Business Research
Volume	149
Early online date	25 May 2022
DOIs	https://doi.org/10.1016/j.jbusres.2022.05.035
Publication status	Published - 1 Oct 2022

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.jbusres.2022.05.035

Cite this

@article{35dcb3375fed4d629163b3aed4ba2abc,

title = "Capital market deepening, Governor{\textquoteright}s characteristics and Russian regional enterprises: A big data analysis",

abstract = "We measure the impact of the bank credit disbursement on Micro, Small and Medium Enterprises (MSME) growth, incorporating the role of regional governors{\textquoteright} characteristics in the case of 84 regions of the Russian Federation. Given the considerable heterogeneity across regions, time and reverse causality, we applied the Panel Quantile Regression via Moments (MM-QR) approach to analyze monthly frequency big data (2016M1–2021M1). Our empirical investigation demonstrates that bank credit disbursement and MSME growth follow a non-monotonic relation, implying that up to the specific size of the credit is detrimental, but after surpassing the threshold size, it is supportive to MSME growth under each quantile. Regional governors{\textquoteright} political and economic liaison with the federal government impede MSME growth under different quantiles of MSME growth. Our findings further infer that credit market deepening along with firms{\textquoteright} individual characteristics are crucial for enterprise performance in the current time of digital transformation. We provide several policy implications.",

keywords = "MSME, Capital market deepening, Governor{\textquoteright}s characteristics, Big data, Russian regions",

author = "Kazi Sohag and Tomas Kliestik and Shams, {S.M. Riad} and Oleg Mariev and Natalia Davidson",

note = "Funding information: This study was supported by the grant of the Russian Science Foundation, Code: 19-18-00262. “Empirical modelling of balanced technological and socioeconomic development in the Russian regions",

year = "2022",

month = oct,

day = "1",

doi = "10.1016/j.jbusres.2022.05.035",

language = "English",

volume = "149",

pages = "340--352",

journal = "Journal of Business Research",

issn = "0148-2963",

publisher = "Elsevier",

}

TY - JOUR

T1 - Capital market deepening, Governor’s characteristics and Russian regional enterprises

T2 - A big data analysis

AU - Sohag, Kazi

AU - Kliestik, Tomas

AU - Shams, S.M. Riad

AU - Mariev, Oleg

AU - Davidson, Natalia

N1 - Funding information: This study was supported by the grant of the Russian Science Foundation, Code: 19-18-00262. “Empirical modelling of balanced technological and socioeconomic development in the Russian regions

PY - 2022/10/1

Y1 - 2022/10/1

N2 - We measure the impact of the bank credit disbursement on Micro, Small and Medium Enterprises (MSME) growth, incorporating the role of regional governors’ characteristics in the case of 84 regions of the Russian Federation. Given the considerable heterogeneity across regions, time and reverse causality, we applied the Panel Quantile Regression via Moments (MM-QR) approach to analyze monthly frequency big data (2016M1–2021M1). Our empirical investigation demonstrates that bank credit disbursement and MSME growth follow a non-monotonic relation, implying that up to the specific size of the credit is detrimental, but after surpassing the threshold size, it is supportive to MSME growth under each quantile. Regional governors’ political and economic liaison with the federal government impede MSME growth under different quantiles of MSME growth. Our findings further infer that credit market deepening along with firms’ individual characteristics are crucial for enterprise performance in the current time of digital transformation. We provide several policy implications.

AB - We measure the impact of the bank credit disbursement on Micro, Small and Medium Enterprises (MSME) growth, incorporating the role of regional governors’ characteristics in the case of 84 regions of the Russian Federation. Given the considerable heterogeneity across regions, time and reverse causality, we applied the Panel Quantile Regression via Moments (MM-QR) approach to analyze monthly frequency big data (2016M1–2021M1). Our empirical investigation demonstrates that bank credit disbursement and MSME growth follow a non-monotonic relation, implying that up to the specific size of the credit is detrimental, but after surpassing the threshold size, it is supportive to MSME growth under each quantile. Regional governors’ political and economic liaison with the federal government impede MSME growth under different quantiles of MSME growth. Our findings further infer that credit market deepening along with firms’ individual characteristics are crucial for enterprise performance in the current time of digital transformation. We provide several policy implications.

KW - MSME

KW - Capital market deepening

KW - Governor’s characteristics

KW - Big data

KW - Russian regions

U2 - 10.1016/j.jbusres.2022.05.035

DO - 10.1016/j.jbusres.2022.05.035

M3 - Article

VL - 149

SP - 340

EP - 352

JO - Journal of Business Research

JF - Journal of Business Research

SN - 0148-2963

ER -

Capital market deepening, Governor’s characteristics and Russian regional enterprises: A big data analysis

Abstract

UN SDGs

Access to Document

Fingerprint

Cite this