Access to finance, social capital and the improvement of corporate performance: evidence from Southeast Asia

Abstract

Purpose

This study examines the influence of access to finance and social capital on the improvement of the corporate performance of non-listed firms of Southeast Asian countries. Furthermore, this paper also explores the mediating role of firms' access to finance between the association of social capital and the improvement of corporate performance.

Design/methodology/approach

This study utilizes the Bank Business Environment and Enterprise Performance Survey from 2015 to 2017. Specifically, the survey was administered by the World Bank. Data were analyzed using structural modeling in Smart-PLS.

Findings

The findings show that firms' access to finance and social capital significantly influences the improvement of corporate performance. Additionally, the study’s analysis further reports the mediating role of firms' access to finance between the association of social capital and the improvement of corporate performance.

Practical implications

This study has implications for governments, regulators and policymakers for enhancing access to finance and social capital, and improving corporate performance.

Originality/value

This paper establishes the importance of firms' access to finance and social capital for improving firms' overall performance in the broader context of Southeast Asia.

Citation

Kijkasiwat, P., Shahid, A.U., Hassan, M.K. and Hunjra, A.I. (2022), "Access to finance, social capital and the improvement of corporate performance: evidence from Southeast Asia", Managerial Finance, Vol. 48 No. 7, pp. 1047-1068. https://doi.org/10.1108/MF-10-2021-0519