scholarly journals The Impact of the Business Environment on Young Firm Financing

2011 ◽  
Vol 25 (3) ◽  
pp. 486-507 ◽  
Author(s):  
Larry W. Chavis ◽  
Leora F. Klapper ◽  
Inessa Love
Author(s):  
Inessa Love ◽  
Larry W. Chavis ◽  
Leora F. Klapper

2018 ◽  
pp. 32-51
Author(s):  
R. Yu. Kochnev ◽  
L. I. Polishchuk ◽  
A. Yu. Rubin

We present the comparative analysis of the impact of centralized and decentralized corruption for private sector. Theory and empirical evidence point out to a “double jeopardy” of decentralized corruption which increases the burden of corruption upon private firms and weakens the incentives of bureaucracy to provide public production inputs, such as infrastructure. These outcomes are produced by simultaneous free-riding and the tragedy of the commons effects. The empirical part of the paper utilizes data of the Business Environment and Enterprise Performance project.


2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Vinay Chauhan ◽  
Sushma Kaushal

Environmental scanning yields greater anticipatory management that provides important inputs for aquitision and use of information for planning and designing organization strategies. Apart from this, effective environmental scanning activities are likely to deal with threats and grasp the opportunities to finally link with enhancing organizational effectiveness. In fact this relationship matrix has led the researchers to conduct an environmental scanning through an examination of the existing status the components of the macro-environment vis-a-vis their relationship with the organizational effectiveness. There are a number of approaches, which describe the macro-environment, of which PEST analysis is regarded as the most common approach for considering the external business environment. Thus, the present study applies PEST analysis to scan the existing business environment. Jammu and Kashmir due to its peculiar political, geographical, economic, and socio-cultural features, had led its cost mountain economy become a distinctive identity. Despite the fact that the state has rich endowments, international relations with its neighbours vis-a-vis its impact on political environment also pose developmental challenges for the business units operating in the state. This has provided valid rationale for conducting the present. The environmental scanning is done through the perception of the select entrepreneurs operating MSMEs in the state of J & K. An impact analysis of environmental factors (PEST) on the organizational effectiveness is also done in the study. The findings of the study show that the political environment of the state that is not favourable for entrepreneural development whereas the rest of the other drivers of PEST i.e. economic environment, socio-cultural environment, and technological environment show a favourable response of the entrepreneurs. In terms of cause and effect relationship, it is found that the first two drivers of the PEST i.e. political and economic dimension impacts OE positively whereas the other two dimensions namely socio-cultural and technological impacts OE negatively but it is pertinent to mention that the impact is very less and is insigninificant. The study also suggests some of strategic options for developing and creating an enabling environment for successful entrepreneurial development to achieve integrated development of the state.


2019 ◽  
Vol 10 (4) ◽  
pp. 106
Author(s):  
Bader A. Alyoubi

Big Data is gaining rapid popularity in e-commerce sector across the globe. There is a general consensus among experts that Saudi organisations are late in adopting new technologies. It is generally believed that the lack of research in latest technologies that are specific to Saudi Arabia that is culturally, socially, and economically different from the West, is one of the key factors for the delay in technology adoption in Saudi Arabia. Hence, to fill this gap to a certain extent and create awareness about Big Data technology, the primary goal of this research was to identify the impact of Big Data on e-commerce organisations in Saudi Arabia. Internet has changed the business environment of Saudi Arabia too. E-commerce is set for achieving new heights due to latest technological advancements. A qualitative research approach was used by conducting interviews with highly experienced professional to gather primary data. Using multiple sources of evidence, this research found out that traditional databases are not capable of handling massive data. Big Data is a promising technology that can be adopted by e-commerce companies in Saudi Arabia. Big Data’s predictive analytics will certainly help e-commerce companies to gain better insight of the consumer behaviour and thus offer customised products and services. The key finding of this research is that Big Data has a significant impact in e-commerce organisations in Saudi Arabia on various verticals like customer retention, inventory management, product customisation, and fraud detection.


Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.


2020 ◽  
Vol 20 (5) ◽  
pp. 939-964
Author(s):  
Mohammad A.A Zaid ◽  
Man Wang ◽  
Sara T.F. Abuhijleh ◽  
Ayman Issa ◽  
Mohammed W.A. Saleh ◽  
...  

Purpose Motivated by the agency theory, this study aims to empirically examine the nexus between board attributes and a firm’s financing decisions of non-financial listed firms in Palestine and how the previous relationship is moderated and shaped by the level of gender diversity. Design/methodology/approach Multiple regression analysis on a panel data was used. Further, we applied three different approaches of static panel data “pooled OLS, fixed effect and random effect.” Fixed-effects estimator was selected as the optimal and most appropriate model. In addition, to control for the potential endogeneity problem and to profoundly analyze the study data, the authors perform the one-step system generalized method of moments (GMM) estimator. Dynamic panel GMM specification was superior in generating robust findings. Findings The findings clearly unveil that all explanatory variables in the study model have a significant influence on the firm’s financing decisions. Moreover, the results report that the impact of board size and board independence are more positive under conditions of a high level of gender diversity, whereas the influence of CEO duality on the firm’s leverage level turned from negative to positive. In a nutshell, gender diversity moderates the effect of board structure on a firm’s financing decisions. Research limitations/implications This study was restricted to one institutional context (Palestine); therefore, the results reflect the attributes of the Palestinian business environment. In this vein, it is possible to generate different findings in other countries, particularly in developed markets. Practical implications The findings of this study can draw responsible parties and policymakers’ attention in developing countries to introduce and contextualize new mechanisms that can lead to better monitoring process and help firms in attracting better resources and establishing an optimal capital structure. For instance, entities should mandate a minimum quota for the proportion of women incorporation in boardrooms. Originality/value This study provides empirical evidence on the moderating role of gender diversity on the effect of board structure on firm’s financing decisions, something that was predominantly neglected by the earlier studies and has not yet examined by ancestors. Thereby, to protrude nuanced understanding of this novel and unprecedented idea, this study thoroughly bridges this research gap and contributes practically and theoretically to the existing corporate governance–capital structure literature.


2021 ◽  
Vol 13 (7) ◽  
pp. 3591
Author(s):  
Marija Mosurović Ružičić ◽  
Mirjana Miletić ◽  
Marina Dobrota

Influences from the modern business environment indicate the need for the incorporation of sustainability concepts from an innovation system perspective. In the presented research, we emphasize the energy efficiency concept within the frame of sustainability and innovation. The aim of this research was to underline and explore the relationships between innovation, energy efficiency, and sustainability in the construction industry. To answer the research questions, a questionnaire was created to explore the impact of the energy efficiency certification process on the innovation behavior of construction industry enterprises in Serbia. The results show that energy efficiency has supported innovation, and that there exists a relationship between sustainability and innovativeness in the construction industry. Applying energy efficiency passports has influenced the co-operation of enterprises in the construction sector and other actors in the national innovation system in Serbia. The innovation concept demonstrates that enterprises in the construction industry should be observed as a part of the wider picture—the national innovation system. In turn, the specific context of a particular national innovation system should be seen within the wider picture of national innovation systems of Central and Eastern European Countries (CEECs).


2018 ◽  
Vol 8 (3) ◽  
pp. 55
Author(s):  
Ibrahim Alshamaileh ◽  
Fouad Sheikh Salem

This study aims to measure the impact of facilities provided by King Hussein Business Park on investment promotion. King Hussein Business Park has reached 100% occupancy rate, with a crucial plan for expansion to over 1.4 million m2 of land. The problem of the study lies on how King Hussein Business Park will attract additional investments to occupy the spaces targeted for expansion. Results of the study reveal a significant positive impact of the facilities on investment promotion. The robust infrastructure, complementary services, and investment law benefits influence the creation of attractive business environment for investments. These findings show that countries with scarce resources face many challenges in promoting investment either locally or internationally, and they must improve their business climate for investment promotion. Governments also have the means to make conducting the businesses and projects easier for people.


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