Arbeitspapier
Foreign Bank Presence and Its Effect on Firm Entry and Exit in Transition Economies
This study investigates the impact of foreign bank penetration in Central and Eastern Europe on firm entry. We demonstrate that the acquisition of domestic banks by foreign investors has led to reduced firm creation, smaller average size of entrants and increased firm exit in opaque industries compared to transparent ones. At the same time, the entry of greenfield foreign banks spurred firm creation and exit. Unlike previous studies, which use interchangeably the notions of opacity and size, we define opacity in terms of technological process and show that economic significance of foreign bank entry is larger for opaque industries than for industries with large shares of small firms. Our findings can be interpreted as evidence of increased credit constraints and are consistent with theories that argue that foreign bank presence exacerbates informational asymmetries.
- Sprache
-
Englisch
- Erschienen in
-
Series: FINESS Working Paper ; No. D.5.2
- Klassifikation
-
Wirtschaft
Money Supply; Credit; Money Multipliers
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
New Firms; Startups
- Thema
-
Entrepreneurship
Foreign bank entry
Asymmetric information
Credit constraints
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Havrylchyk, Olena
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Havrylchyk, Olena
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2010
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