Access to finance and firm performance in Africa

dc.contributor.advisorTogan Egrican, Aslien_US
dc.contributor.authorNgalim, Lawrence Maishu
dc.contributor.authorTogan Eğrican, Aslı
dc.date2022-07
dc.date.accessioned2023-07-29T09:35:47Z
dc.date.available2023-07-29T09:35:47Z
dc.date.issued2022
dc.departmentEnstitüler, Lisansüstü Eğitim Enstitüsü, İşletme Ana Bilim Dalıen_US
dc.description.abstractFirm growth potentially translates positive effects to the economy, and thus likely to spur growth. Importantly, firm growth is heavily conditioned on financing. This thesis takes an interest on firms’ financing and investigates the importance of external finance for firm-growth in Africa––a geography where financial constraints significantly restrain firms from growth compared to other parts of the world. To understand these effects, I focus on two important regions within Africa–– first is a monetary union known as CEMAC zone (Central African Economic and Monetary Community) and the second, Sub-Saharan Africa (SSA) to understand whether external finance matters for firm growth. To capture these effects, the study constructs and employ a novel instrument of external finance––colonial transportation routes i.e., colonial railroads and ports’ distances to firms’ current location in the CEMAC zone. Findings are robust to alternative specifications and lend credence to the view that external finance matters for firm growth. Turning to SSA, similar question is raised which investigates the effects of external finance on firm growth by focusing on an alternative financing channel, private equity. Results indicate recipients of private equity financing have a higher survival probability than non-recipient peers, equally, recipients are strongly associated with firm growth as proxied by IPO or acquisition. In order to have a complete picture of alternative financing sources available to firms within Africa, I discuss the growth and merits of alternative financing options over traditional methods in driving greater financial inclusion within SSA in the third part. Notwithstanding, Africa is one of the regions for which financial resources are important and capital markets need further development, the region is not as densely analyzed in the literature because of lack of data. I aim to contribute to “access to finance” literature by providing an overview of the state of financial access to firms in important geographical regions in Africa. As Africa faces challenges in access to finance, it is therefore important for this region to have financial reforms that can accompany policy. This thesis has implications for decisionmakers as it provides empirical support on the importance of external financial opportunities for firms which in turn is crucial for growth.en_US
dc.identifier.urihttps://hdl.handle.net/20.500.12469/4418
dc.identifier.yoktezid759161en_US
dc.language.isoenen_US
dc.publisherKadir Has Üniversitesien_US
dc.relation.publicationcategoryTezen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectAccess to Financeen_US
dc.subjectFirm Growthen_US
dc.subjectColonialismen_US
dc.subjectEconomic Developmenten_US
dc.titleAccess to finance and firm performance in Africaen_US
dc.typeDoctoral Thesisen_US
dspace.entity.typePublication
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relation.isAuthorOfPublication.latestForDiscovery9f750fd2-4927-497c-a6d8-ead17bc9a117

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