Access to finance, social capital and the improvement of corporate performance: evidence from Southeast Asia
ISSN: 0307-4358
Article publication date: 31 May 2022
Issue publication date: 7 June 2022
Abstract
Purpose
This study examines the influence of access to finance and social capital on the improvement of the corporate performance of non-listed firms of Southeast Asian countries. Furthermore, this paper also explores the mediating role of firms' access to finance between the association of social capital and the improvement of corporate performance.
Design/methodology/approach
This study utilizes the Bank Business Environment and Enterprise Performance Survey from 2015 to 2017. Specifically, the survey was administered by the World Bank. Data were analyzed using structural modeling in Smart-PLS.
Findings
The findings show that firms' access to finance and social capital significantly influences the improvement of corporate performance. Additionally, the study’s analysis further reports the mediating role of firms' access to finance between the association of social capital and the improvement of corporate performance.
Practical implications
This study has implications for governments, regulators and policymakers for enhancing access to finance and social capital, and improving corporate performance.
Originality/value
This paper establishes the importance of firms' access to finance and social capital for improving firms' overall performance in the broader context of Southeast Asia.
Keywords
Acknowledgements
Conflict of interest: All authors declare that they have no conflict of interest.
Citation
Kijkasiwat, P., Shahid, A.U., Hassan, M.K. and Hunjra, A.I. (2022), "Access to finance, social capital and the improvement of corporate performance: evidence from Southeast Asia", Managerial Finance, Vol. 48 No. 7, pp. 1047-1068. https://doi.org/10.1108/MF-10-2021-0519
Publisher
:Emerald Publishing Limited
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