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    Will strangers help you enter? The effect of foreign bank presence on new firm entry

    Bermpei, T. and Kalyas, A. and Neri, Lorenzo and Russo, A. (2018) Will strangers help you enter? The effect of foreign bank presence on new firm entry. Journal of Financial Services Research , ISSN 1573-0735. (In Press)

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    Abstract

    We examine the effect of foreign bank presence on new firm entry in 83 economies over the 2005-2013 period. The empirical findings show that foreign bank presence exerts a positive and significant effect on firm entry. This effect subdues in countries with strong creditor rights, while it strengthens in economies with high depth of credit information sharing. In further analysis, we find that the type of credit information sharing provider matters. The positive effect of foreign bank presence on firm entry strengthens in the presence of a private credit bureau, whereas it subdues in the presence of a public credit registry. Finally, we find some evidence that cultural and information sharing distance between home and host economies weakens the positive effect of foreign bank presence on firm entry. In terms of policy, attracting foreign banks while strengthening credit information sharing through private credit bureaus could benefit entrepreneurship in host economies.

    Metadata

    Item Type: Article
    Additional Information: The final publication is available at Springer via the link above.
    Keyword(s) / Subject(s): Foreign banks, Firm entry, Creditor rights, Information sharing
    School: Other
    Depositing User: Lorenzo Neri
    Date Deposited: 21 Feb 2018 09:47
    Last Modified: 28 Jul 2019 06:38
    URI: http://eprints.bbk.ac.uk/id/eprint/21236

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