Does State Ownership of Banks Matter? Russian Evidence from the Financial Crisis

Davydov, Denis

doi:10.2139/ssrn.2503659

Cited by 11 publications

(12 citation statements)

References 57 publications

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“…We found a statistically significant positive coefficient for external finance in case of bank‐based financial system. This is consistent with earlier results of Demirguc‐Kunt and Levine (), Carlin and Mayer (), and Davydov (). The results also show that firms from a market‐based system rely more on internal sources rather than external sources to finance R&D due to the fact that in emerging markets, the cost of borrowing from capital markets would be higher due to weak financial institutions (Booth et al, ; Demirguc‐Kunt and Maksimovic, ).…”

Section: Resultssupporting

confidence: 93%

“…The study has also found that firms from countries that follow a bank-based financial system rely more on external funding (mostly bank borrowing) to finance their R&D activities. This is consistent with the notion that bank finance reduces information asymmetry and agency problems through an enhanced level of monitoring (Davydov, 2017). The results also show that alliance firms use both external and internal funds to finance R&D activities.…”

Section: Discussionsupporting

confidence: 89%

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Financing behaviour of R&D investment in the emerging markets: the role of alliance and financial system

2017

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This paper examines the financing behaviour of research and development (R&D) investments in emerging markets. Drawing on institutional theory and using panel data of generalized methods of moment estimation for a sample of 302 firms from 20 countries during the period 2003–2015, we find that emerging market firms tend to use internal funds for financing R&D investments. Interesting results emerged when the sample was divided as alliance and non‐alliance firms, and bank‐based and market‐based financial systems. The results show that R&D financing behaves differently for alliance and non‐alliance firms. Alliance firms use both internal and external funds for R&D investments, while non‐alliance firms do not use external funds. We also document that a country's financial system influences the choice of available sources of finance. Firms from countries that follow a bank‐based financial system tend to rely on external funds while firms from countries that follow a market‐based financial system depend more on internal funds for financing R&D investments. This study is important as it provides new evidence on financing R&D investments in emerging countries taking into account the institutional arguments of financing choices, and so should guide stakeholders about appropriate sources of R&D financing.

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Section: Resultssupporting

confidence: 93%

Section: Discussionsupporting

confidence: 89%

Financing behaviour of R&D investment in the emerging markets: the role of alliance and financial system

2017

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“…Many studies tackle state ownership of banks and its impact on lending (Cull and Martinez Peria, 2013;Davydov, 2016).…”

Section: Related Literaturementioning

confidence: 99%

Cyclicality of bank liquidity creation

Davydov

Fungáčová

Weill

2018

Journal of International Financial Markets, Institutions and Mo

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“…From the policy makers' point of view, understanding the bank specific factors may be useful to make effective policies (Klomp and Haan, 2012;Ghosh, 2015). The examination includes liquidity factors (Ivashina and Scharfstein, 2010;Cornett et al, 2011;Khan et al, 2017), capital factors (Chu et al, 2019), ownership structure (Brei and Schclarek, 2013;Chen et al, 2016;Choi et al, 2016;Davydov, 2018), and publicly held banks (Duprey, 2015). Therefore, this study will try to examine those various factors in explaining the variations in loan growth.…”

Section: Introductionmentioning

confidence: 99%

The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia

Pasaribu¹,

Mindosa

2021

JIEB

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Introduction/Main Objectives: This study aims to examine the specific determinants of loan growth and the consequences of excessive loan growth on bank stability. Background Problems: Bank loans play an important role in economic growth, but previous studies indicate that excessive loans lead to bank instability. Novelty: This study undertakes a comprehensive analysis, as it will discuss both the loan determinants and excessive loans simultaneously. Research Methods: This study covers more than 89% of the total loans of commercial banks (listed and non-listed banks) between 2002 and 2018 and it employs GMM in order to obtain robust estimations. Finding/Results: The growth of customers’ deposits and gross NPL are the most important factors in explaining loan growth in Indonesia. Banks with excessive loans tend to have high levels of credit risk. Conclusion: Banks’ liquidity and credit risk have important roles in explaining banks’ loans. However, excessive loans could lead to bank instability, particularly for small banks.

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Does State Ownership of Banks Matter? Russian Evidence from the Financial Crisis

Cited by 11 publications

References 57 publications

Financing behaviour of R&D investment in the emerging markets: the role of alliance and financial system

Financing behaviour of R&D investment in the emerging markets: the role of alliance and financial system

Cyclicality of bank liquidity creation

The Bank Specific Determinants of Loan Growth and Stability: Evidence from Indonesia

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