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
UR - http://www.scopus.com/inward/record.url?scp=85131103262&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2022.05.035
DO - 10.1016/j.jbusres.2022.05.035
M3 - Article
SN - 0148-2963
VL - 149
SP - 340
EP - 352
JO - Journal of Business Research
JF - Journal of Business Research
ER -
