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Will Strangers Help you Enter? The Effect of Foreign Bank Presence on New Firm Entry

Bermpei, T., Kalyvas, A.N., Neri, L., Russo, A. (2019) Will Strangers Help you Enter? The Effect of Foreign Bank Presence on New Firm Entry. Journal of Financial Services Research, 56 (1). pp. 1-38. ISSN 0920-8550. (doi:10.1007/s10693-017-0286-1) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:100409)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL:
https://dx.doi.org/10.1007/s10693-017-0286-1

Abstract

We examine the effect of foreign bank presence on new firm entry in 83 economies over the 2005–2013 period. The empirical findings show that foreign bank presence exerts a positive and significant effect on firm entry. This effect subsides in countries with strong creditor rights, while it strengthens in economies with high depth of credit information sharing. In further analysis, we find that the type of credit information sharing provider matters. The positive effect of foreign bank presence on firm entry strengthens in the presence of a private credit bureau, whereas it is subdued in the presence of a public credit registry. Finally, we find some evidence that cultural and information sharing distance between home and host economies weakens the positive effect of foreign bank presence on firm entry. In terms of policy, attracting foreign banks while strengthening credit information sharing through private credit bureaus could benefit entrepreneurship in host economies. © 2018, Springer Science+Business Media, LLC, part of Springer Nature.

Item Type: Article
DOI/Identification number: 10.1007/s10693-017-0286-1
Uncontrolled keywords: Foreign banks; Firm entry; Creditor rights; Information sharing
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Funders: University of Southampton (https://ror.org/01ryk1543)
Depositing User: Nikolaos Antonios Kalyvas
Date Deposited: 19 Apr 2023 09:50 UTC
Last Modified: 21 Apr 2023 14:42 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/100409 (The current URI for this page, for reference purposes)

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