Nguyen, Bach (2021). Local institutions, external finance and investment decisions of small businesses in Vietnam. Economic Systems, 45 (3),
Abstract
This study investigates the impacts of local institutions, external finance, and their joint effects on firm investment in Vietnam. Investment decisions are classified into two categories: fixed asset investment and non-fixed asset investment. Analysing a set of 1.3 million firm-year observations of businesses in Vietnam (2006–2016), we find evidence that local institutions (both formal and informal) positively influence fixed asset investment but negatively affect non-fixed asset investment. Also, we find that informal loans are positively associated with both types of firm investment while bank loans are negatively associated with both types of firm investment. More importantly, we find that the quality of local institutions is able to moderate firms’ external financing behaviour, leading to increased investment values.
Publication DOI: | https://doi.org/10.1016/j.ecosys.2021.100880 |
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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: | © 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ |
Uncontrolled Keywords: | Informal finance,Informal institutions,Investment,Small business,Vietnam,Economics and Econometrics |
Publication ISSN: | 0939-3625 |
Last Modified: | 06 Aug 2024 08:49 |
Date Deposited: | 27 Apr 2020 08:23 |
Full Text Link: | |
Related URLs: |
https://linking ... 939362521000285
(Publisher URL) http://www.scop ... tnerID=8YFLogxK (Scopus URL) |
PURE Output Type: | Article |
Published Date: | 2021-09 |
Published Online Date: | 2021-06-15 |
Accepted Date: | 2021-04-21 |
Authors: |
Nguyen, Bach
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