Entrepreneurial Reinvestment:Local Governance, Ownership, and Financing Matter - Evidence from Vietnam


This study investigates the relative importance of local governance and external financing on small firms' reinvestments. Using a set of more than 300,000 Vietnamese firm‐level observations from 2006 to 2015, this study finds that local governance quality is positively associated with small firms' reinvestments. However, regarding external funds, only informal finance is positively associated with reinvestments while government loans and bank loans serve as substitutes to reinvestments. Also, this study suggests that there is significant heterogeneity among ownership sectors and between micro‐enterprises and small firms in the way they value the relative importance of local governance arrangements and financing sources.

Publication DOI: https://doi.org/10.1111/jsbm.12475
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Centre for Personal Financial Wellbeing
College of Business and Social Sciences > Aston Business School
Additional Information: Copyright © 2018 by John Wiley & Sons. This is the peer reviewed version of the following article: Nguyen, B. (2018), Entrepreneurial Reinvestment: Local Governance, Ownership, and Financing Matter—Evidence from Vietnam. Journal of Small Business Management. , which has been published in final form at https://doi.org/10.1111/jsbm.12475. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Publication ISSN: 1540-627X
Last Modified: 12 Feb 2024 08:20
Date Deposited: 06 Sep 2018 08:01
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Related URLs: https://onlinel ... 1111/jsbm.12475 (Publisher URL)
PURE Output Type: Article
Published Date: 2019-11-01
Published Online Date: 2018-10-29
Accepted Date: 2018-08-01
Authors: Nguyen, Bach (ORCID Profile 0000-0003-1527-7443)



Version: Accepted Version

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