| 1. |
- Ho, Cynthia Sin Tian, 1994-, et al.
(författare)
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A longitudinal study on the effects of bank branch accessibility on new firm formation in different industries.
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Ingår i: Growth and Change. - 0017-4815 .- 1468-2257.
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Tidskriftsartikel (refereegranskat)abstract
- This paper studies the effects of bank branch accessibility on new firm formation in different industries after the closures of bank branches between 2007 and 2013. Spatial Durbin models are used for a panel dataset of two years — 2007 and 2013 — at the municipal level in all 290 Swedish municipalities. Potential endogeneity issues are controlled for by using an instrumental variable approach to estimate proximity to bank branches. Proximity to bank branches influences new firm formation in some industries in Swedish municipalities, with more pronounced effects in capital-intensive industries, such as manufacturing, ‘transport and communications’, and ‘education, health, and others’, as indicated by the results of using a proxy for proximity to bank branches weighted by firm population. The results of using the proxy for proximity to bank branches weighted by labour population show significant negative effects of proximity to bank branch on new firm formation in the ‘education, health and others’ industry. This study shows that it is important to consider the effects of proximity to bank branches on new firm formation in some industries that are more capital intensive. Policy-makers can use the findings of this research to design policies to increase entrepreneurship in certain industries.
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| 2. |
- Ho, Cynthia Sin Tian, 1994-
(författare)
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Accessibility of bank branches and new firm formation in Sweden
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Ingår i: Journal of regional science. - 0022-4146 .- 1467-9787.
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Tidskriftsartikel (refereegranskat)abstract
- Drawing on location theory, the local relationships between new firm formation and its determinants are explored in 290 municipalities across Sweden. From the robust geographically weighted regression (GWR) models, mostly positive relationships with new firm formation are shown for firm density, human capital level, industry diversification level and percentage of immigrants living in the area. In contrast, mostly negative relationships are shown for weighted mean distance to the nearest bank branches, establishment size, unemployment rate, industry specialization. Spatially constrained multivariate clustering is also applied to group municipalities with similar conditions. Patterns in the industry composition and the location attributes are then analysed for each cluster.
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| 3. |
- Ho, Cynthia Sin Tian, 1994-, et al.
(författare)
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Accessibility of bank branches and new firm formation in Sweden
- 2020
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Konferensbidrag (refereegranskat)abstract
- Drawing on location theory, the local relationships between new firm formation and its determinants are explored in 290 municipalities across Sweden. From the robust geographically weighted regression (GWR) models, mostly positive relationships with new firm formation are shown for firm density, human capital level, industry diversification level and percentage of immigrants living in the area. In contrast, mostly negative relationships are shown for weighted mean distance to the nearest bank branches, establishment size, unemployment rate, industry specialization. This paper shows that the weighted distance to bank branches affect new firm formation negatively and this negative relationship is consistent across all the Swedish municipalities.
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| 4. |
- Ho, Cynthia Sin Tian, 1994-
(författare)
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Accessibility to bank branches and entrepreneurial dynamics : New firm formation and capital structure of SMEs in Sweden amidst a changing banking landscape
- 2021
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- The overall objective of this thesis is to develop a better understanding of the impact of accessibility to bank branches on new firm formation and on the capital structure of small and medium-sized enterprises (SMEs) in Sweden. In this thesis, the accessibility to bank branches is measured by two proxies that are weighted by two different types of population—the labour population and the firm population. By weighing the distance by the population, the accessibility to bank branch measures account for the distribution of the population within the municipality. Furthermore, spatial effects are included in the models in Chapters 2, 3, and 4 to account for the possibility that entrepreneurs in a municipality may travel to obtain financial services from the banks in neighbouring municipalities. The analysis in Chapter 2 provides no evidence that the relationship between the distance to banks and new firm formation varies spatially. This means that the accessibility to bank branches has a negative association with new firm formation, regardless of the location. The findings in Chapter 3 show that an increase in the weighted mean distance to the nearest bank branches negatively affects new firm formation. The findings in Chapter 4 also show that the effects of the accessibility to the bank branches’ proxy weighted by the labour population have a negative effect on new firm formation in the ‘education, health, and others’ industry, while the effects of the accessibility to bank branches’ proxy weighted by the firm population have a negative effect on new firm formation in capital- intensive industries, such as manufacturing, transport and communications, and education, health, and others industries. The final chapter focuses on the impact of the accessibility to bank branches on the capital structure of SMEs. The findings show that an increase in the distance to the bank branch has a significant negative impact on the total and short-term leverage of SMEs. Overall, the results of this thesis are relevant to various stakeholders, such as policy-makers, in making finance more accessible to current and prospective entrepreneurs. For example, the lack of accessibility to government loans and grants, especially in rural regions, is making some regions vulnerable to becoming bank deserts. The existing infrastructures in a municipality, such as the supermarket, can also help to take over some services the closed bank branches previously provided, such as cash deposits and short-term loans.
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| 5. |
- Ho, Cynthia Sin Tian, 1994-
(författare)
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Bank branches and Entrepreneurship : A spatial analysis of new firm formation in Swedish regions and industries in a changing financial landscape
- 2019
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Licentiatavhandling (övrigt vetenskapligt/konstnärligt)abstract
- The purpose of this thesis is to analyse how bank branch closure has affected the formation of new firms and to explore the varying local relationships between the accessibility of bank branches and new firm formation in 290 Swedish municipalities. In the first paper, the effect of bank branch closure is examined through spatial econometric analysis, in particular, the fixed effects and the random effects spatial panel models. The findings of the first paper show that an increase in the weighted distance to the nearest bank branches due to bank branch closure negatively affects new firm formation, based on the random effects spatial panel model. The analysis also shows that spatial effects should be included in the analysis due to spill-over effects from neighbouring municipalities. In the second paper, the varying relationships between new firm formation and its determinants in 290 Swedish municipalities are examined through Geographically weighted regression (GWR). Mostly positive relationships with new firm formation are shown for firm density, human capital level, industry diversification level and percentage of immigrants living in the area. In contrast, mostly negative relationships are shown for weighted mean distance to the nearest bank branches, establishment size, unemployment rate, industry specialization. Spatially constrained multivariate clustering is also applied to group municipalities with similar conditions. Patterns in the industry composition and the location attributes are analysed for each cluster.
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| 6. |
- Ho, Cynthia Sin Tian, 1994-, et al.
(författare)
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Does Proximity to banks bridge the financial and entrepreneurial gaps?
- 2019
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Konferensbidrag (refereegranskat)abstract
- Drawing on location theory, the local relationships between new firm formation and its potential determinants are explored in 290 municipalities across Sweden. From the geographically weighted regression (GWR) model in 2013, mostly positive relationships with new firm formation are shown for firm density, human capital level, industry diversification level and percentage of immigrants living in the area. Mostly negative relationships are shown for weighted mean distance to the nearest bank branches, establishment size, unemployment rate, industry specialization. Spatially constrained multivariate clustering is also applied to group municipalities with similar conditions. Implications of the GWR modelling and cluster analysis are then discussed.
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| 7. |
- Ho, Cynthia Sin Tian, 1994-, et al.
(författare)
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Geographical accessibility to bank branches and its relationship to new firm formation in Sweden via multiscale geographically weighted regression.
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Tidskriftsartikel (refereegranskat)abstract
- The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy.
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| 8. |
- Ho, Cynthia Sin Tian, 1994-, et al.
(författare)
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Geographical accessibility to bank branches and its relationship to new firm formation in Sweden via multiscale geographically weighted regression
- 2022
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Ingår i: Jahrbuch für Regional Wissenschaft. - : Springer Nature. - 0173-7600 .- 1613-9836. ; 42:2, s. 191-218
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Tidskriftsartikel (refereegranskat)abstract
- The geographical accessibility to banks and its relationship with new firm formation can vary across space due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the proximity to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with new firm formation across all Swedish municipalities. The results also show that the relationship between the geographical distance to bank branches and new formation is not spatially varying across space. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches as it would continue to play an important role in the financing of new firms, regardless of the location.
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| 9. |
- Ho, Cynthia Sin Tian, 1994-, et al.
(författare)
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The effect of accessibility to bank branches on SME capital structure: evidence from Swedish panel data
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Ingår i: International Journal of Managerial Finance. - 1743-9132 .- 1758-6569.
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Tidskriftsartikel (refereegranskat)abstract
- Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage).Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013.Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas.Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans.Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs.
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| 10. |
- Ho, Cynthia Sin Tian, 1994-
(författare)
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The Effect of Bank Branch Closure on New Firm Formation: The Swedish Case
- 2020
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Ingår i: The annals of regional science. - : Springer Nature. - 0570-1864 .- 1432-0592. ; 65:2, s. 319-350
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Tidskriftsartikel (refereegranskat)abstract
- In this paper, the effect of local bank branch closures on new firm formation in Sweden is analysed using a panel database that captures the geographical locations of all Swedish bank branches in 2007 and 2013. The previous research has shown that the further a firm is located away from the bank, the higher the monitoring costs will be for the banks. Furthermore, an increase in the distance to the banks will also increase information asymmetry because of the banks’ eroded ability to collect and analyse soft information. Due to the high risks associated with the lack of information and uncertainty, banks might not be as willing to extend credits to a distant firm compared to a nearby firm. Using spatial econometric analysis at a municipal level, it is shown that bank proximity to firms, unemployment rate, industry structures, income growth, change in housing price and percentage of immigrants are vital for new firm formation in Sweden. From the spatial Durbin model with fixed effects, an increase in the weighted distance to the nearest bank branches is shown to affect new firm formation negatively.
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