Article ID Journal Published Year Pages File Type
7355516 International Review of Economics & Finance 2017 29 Pages PDF
Abstract
We investigate the effects of bank financing on regional entrepreneurial activities in China. We present contrasting findings on the role of quantity vs. quality of bank financing on small business formation in China: while we document a consistent, significantly positive relationship between the quality of bank financing and new venture formation, we find that the quantity of supplied credit is insignificant. We report that formal institutions are positively correlated to regional entrepreneurial activities, and informal institutions substitute formal institutions. Our findings also reveal that the institutional environment tends to supplement bank financing in promoting regional entrepreneurial activities.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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