Bank Financing and Firms Performance in Sub-Saharan Africa: Evidence of Cameroon and Senegal

Agbemebia Akitan and Seydi Ababacar Dieng

International Journal of Economics and Finance, 2020, vol. 12, issue 5, 42

Abstract: Using survey data, the aim of this paper is to analyze the impact of bank financing on firms performance both in Cameroon and Senegal. Performance is measured in terms of sales growth. Our methodology is based on an analysis of variance to test if access to credit leads to a difference in performance and on econometric modeling. The main estimation result is that bank financing has a negative impact on firms performance. This result is explained by the credit rationing and the lack of relational behavior on the credit market. Our findings suggest the establishment of a close bank-enterprise relationship in the common quest to promote economic growth.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:12:y:2020:i:5:p:42

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