Access to finance, social capital and the improvement of corporate performance: evidence from Southeast Asia. Issue 7 (31st May 2022)

• Record Type: Journal Article
• Authors: Kijkasiwat, Ploypailin; Shahid, Ahmad Usman; Hassan, M. Kabir; Hunjra, Ahmed Imran
• Is Part Of: Managerial finance. Volume 48:Issue 7(2022)
• Page Start: 1047
• Page End: 1068
• Publication Date: 2022-05-31
• Subjects: Access to finance -- Social capital -- The improvement of corporate performance; Corporations -- Finance -- Periodicals; Business enterprises -- Finance -- Periodicals; 658.1505
• DOI: 10.1108/MF-10-2021-0519
• Languages: English
• ISSNs: 0307-4358

Abstract

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.