Publication detail

Institutions, Financial Development, and Small Business Survival: Evidence from European Emerging Markets

Author(s): prof. Ing. Evžen Kočenda M.A., Ph.D., DSc., Ichiro Iwasaki, Yoshisada Shida
Type: IES Working Papers
Year: 2020
Number: 39
ISSN / ISBN:
Published in: IES Working Papers 39/2020
Publishing place: Prague
Keywords: small business; institutions; financial development; survival analysis; European emerging markets
JEL codes: C14, D02, D22, G33, M21
Suggested Citation: Iwasaki I., Kočenda E., Shida Y. (2020): "Institutions, Financial Development, and Small Business Survival: Evidence from European Emerging Markets" IES Working Papers 39/2020. IES FSV. Charles University.
Abstract: In this paper, we traced the survival status of 94,401 small businesses in 17 European emerging markets from 2007–2017 and empirically examined the determinants of their survival, focusing on institutional quality and financial development. We found that institutional quality and the level of financial development exhibit statistically significant and economically meaningful impacts on the survival probability of the SMEs being researched. The evidence holds even when we control for a set of firm-level characteristics such as ownership structure, financial performance, firm size, and age. The findings are also uniform across industries and country groups and robust beyond the difference in assumption of hazard distribution, firm size, region, and time period.
Downloadable: wp_2020_39_iwasaki_kocenda_shida
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