Entrepreneurial Reinvestment: Local Governance, Ownership, and Financing Matter - Evidence from Vietnam

Bach Nguyen

doi:10.1111/jsbm.12475

Entrepreneurial Reinvestment: Local Governance, Ownership, and Financing Matter - Evidence from Vietnam

Bach Nguyen

Research output: Contribution to journal › Article › peer-review

Abstract

This study investigates the relative importance of local governance and external financing on small firms' reinvestments. Using a set of more than 300,000 Vietnamese firm‐level observations from 2006 to 2015, this study finds that local governance quality is positively associated with small firms' reinvestments. However, regarding external funds, only informal finance is positively associated with reinvestments while government loans and bank loans serve as substitutes to reinvestments. Also, this study suggests that there is significant heterogeneity among ownership sectors and between micro‐enterprises and small firms in the way they value the relative importance of local governance arrangements and financing sources.

Original language	English
Pages (from-to)	323-349
Journal	Journal of Small Business Management
Volume	57
Issue number	Suppl.2
Early online date	29 Oct 2018
DOIs	https://doi.org/10.1111/jsbm.12475
Publication status	Published - 1 Nov 2019

Bibliographical note

Copyright © 2018 by John Wiley & Sons. This is the peer reviewed version of the following article: Nguyen, B. (2018), Entrepreneurial Reinvestment: Local Governance, Ownership, and Financing Matter—Evidence from Vietnam. Journal of Small Business Management. , which has been published in final form at https://doi.org/10.1111/jsbm.12475. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

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10.1111/jsbm.12475

Entrepreneurial Reinvestment Local Governance Vietnam
Copyright © 2018 by John Wiley & Sons. This is the peer reviewed version of the following article: Nguyen, B. (2018), Entrepreneurial Reinvestment: Local Governance, Ownership, and Financing Matter—Evidence from Vietnam. Journal of Small Business Management. , which has been published in final form at https://doi.org/10.1111/jsbm.12475. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
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Cite this

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title = "Entrepreneurial Reinvestment: Local Governance, Ownership, and Financing Matter - Evidence from Vietnam",

abstract = "This study investigates the relative importance of local governance and external financing on small firms' reinvestments. Using a set of more than 300,000 Vietnamese firm‐level observations from 2006 to 2015, this study finds that local governance quality is positively associated with small firms' reinvestments. However, regarding external funds, only informal finance is positively associated with reinvestments while government loans and bank loans serve as substitutes to reinvestments. Also, this study suggests that there is significant heterogeneity among ownership sectors and between micro‐enterprises and small firms in the way they value the relative importance of local governance arrangements and financing sources.",

author = "Bach Nguyen",

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Entrepreneurial Reinvestment: Local Governance, Ownership, and Financing Matter - Evidence from Vietnam

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