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

Ichiro Iwasaki, Evžen Kočenda and Yoshisada Shida

No 2020/39, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

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.

Keywords: small business; institutions; financial development; survival analysis; European emerging markets (search for similar items in EconPapers)
JEL-codes: C14 D02 D22 G33 M21 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2020-10, Revised 2020-10
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-ent, nep-fdg, nep-ore and nep-sbm
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Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ies.fsv.cuni.cz/en/veda-vyzkum/working-papers/6298 (application/pdf)

Related works:
Journal Article: Institutions, financial development, and small business survival: evidence from European emerging markets (2022)
Working Paper: Institutions, Financial Development, and Small Business Survival: Evidence from European Emerging Markets (2021)
Working Paper: Institutions, Financial Development, and Small Business Survival: Evidence from European Emerging Markets (2021)
Working Paper: Institutions, Financial Development, and Small Business Survival: Evidence from European Emerging Markets (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2020_39

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