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This paper examines why farmers self-select out of formal credit markets even though they need external funds.

We use probit and Bayesian probit estimators to detect the determinants of self-selection behavior based on a primary dataset of 2,212 rice farmers in Vietnam. After that, we use the multinomial probit (MNP) and Bayesian MNP estimators to reveal the impact of relevant factors on the decision to self-select for farmers belonging to each self-selection category.

The probit and Bayesian probit estimators show that the decision to self-select depends on household head age, income per capita, farm size, whether or not to have relatives or friends working for banks, the number of previous borrowings, risks related to natural disasters, diseases, and rice price, and the number of banks with which the farmer has relationships. The MNP and Bayesian MNP estimators give further insights into the decision of farmers to self-select in that determinants of the self-selection behavior depend on the reasons to self-select. In concrete, farm size and the number of previous borrowings mitigate the self-selection of farmers who did not apply for loans due to having access to other preferred sources of credit. The self-selection of farmers not applying for loans because of unfavorable loan terms is conditional on household head age, farming experience, income, farm size, the number of previous borrowings, natural disaster risk, and the number of banks the farmer has relationships with. Several factors, including education, income, the distance to the nearest bank, whether or not having relatives or friends working for banks, the number of previous borrowings, risks, and the number of banks the farmer has relationships with, affect the self-selection of farmers not applying for loans because of high borrowing costs. The self-selection of farmers not applying for loans because of complex application procedures depends on income and the number of previous borrowings. Finally, the household head’s age, gender, experience, income, farm size, the amount of trade credit granted, the number of previous borrowings, natural disaster risk, and the number of banks the farmer has relationships with are the determinants of the self-selection of farmers not applying for loans because of a fear not being able to repay.

This paper fills the knowledge gap by investigating why farmers self-select out of formal credit markets. It provides evidence of how the farmers’ subjective perceptions of rural credit markets contribute to their self-selection.

This paper shows that demand-side constraints are also vital for farmers’ access to bank credit. Improving credit access via easing supply-side constraints may not increase credit uptake without addressing demand-side factors. Given that finding, it recommends policies to improve access to bank credit for farmers regarding the demand side.

This study uses data from the Chinese banking sector to explore the relationship between green credit and risk-taking in commercial banks. It also examines whether the level of regional green development acts as a moderator regarding this relationship.

Using a dataset composed of annual observations from 57 Chinese commercial banks between 2008 and 2021, this study employs both piecewise and curvilinear models.

Our results indicate that when the scale of green credit is low (<0.164), it increases the risk-taking of commercial banks. Conversely, when the scale of green credit is high (>0.164), it reduces the risk-taking of commercial banks. Moreover, this nonlinear relationship impact exhibits bank heterogeneity. Furthermore, the results show that the level of regional green development and local government policy support negatively moderate the relationship between green credit and commercial bank risk-taking. Furthermore, we find that green credit can directly enhance the net interest margin of commercial banks.

This study is the first to provide evidence of a nonlinear relationship between green credit and risk-taking in commercial banks, and it identifies the significant roles of regional green development level and local government policy support in the Chinese context.

This review aims to present the state of the art regarding the impact of financial technology (FinTech) on financial inclusion and its implications for consumers and institutions in terms of accessibility, usage and quality. An integrated framework is developed to illustrate the primary thematic areas for future research.

We performed a systematic literature review (SLR) to summarize and synthesize existing research published in peer-reviewed academic journals. Forty-two eligible studies were identified from the Web of Science database and a cross-reference search.

The results suggest that FinTech promotes financial inclusion for consumers and businesses by increasing the accessibility, usage and quality of financial products. We present a multidisciplinary integrative framework that links the three dimensions of financial inclusion (i.e. access, usage and quality) to financial technology. Finally, we propose several avenues for future research.

To the best of the author’s knowledge, this is the first SLR on how FinTech is associated with the accessibility, usage and quality of financial products. We provide an integrative framework for understanding the topic with implications in different fields.

The purpose of this paper is to assess the latest directives of the European Parliament and the Council – MiFID II and MiFIR – on markets in financial instruments in response to the growth of dark pools in European equity markets.

This paper examines the impact of the new regulatory packages on European equity markets by identifying areas where the legislation is effective and comparing these changes in EU legislation with US legislation on dark pools.

This paper find that the MiFID II and MiFIR directives, implemented by the European Securities and Markets Authority to address these concerns, have reduced information asymmetry between market participants, thereby increasing competition between regulated markets and alternative trading facilities.

Increased competition can improve market quality, which has practical implications for financial market regulation and policy formulation.

These findings are novel in the existing literature on high frequency trading through dark pools. They improve the understanding of dark trading and its impact on competition and market efficiency. In addition, this research can assist policymakers in designing effective financial market regulation. The economic analysis of legislation also helps regulators assess the impact of new legal provisions on the functioning of capital markets.

Does societal trust influence short-term financial management? Recent papers uncover the importance of societal trust for financial management in specific countries and large firms. Our paper aims to provide a comprehensive analysis of the impact of societal trust on short-term financial policies of SMEs, namely working capital management and cash holdings.

We rely on a sample of 14,711 privately owned medium-sized manufacturing firms from 26 European countries with a sample period between 2014 and 2020. For estimation, we use pooled OLS and hierarchical linear models and control for several firm-specific and country-specific known determinants of short-term financial management. Moreover, our results are robust to the specific measurement of trust, financial constraints, and corruption.

We show a positive relationship between trust and working capital requirements investment and a negative relationship between trust and the level of cash holdings. Moreover, we show that trust attenuates the negative impact of being a financially constrained firm and the positive impact of national perceptions of corruption. Finally, in higher trustworthy environments, firms operate with relatively higher inventories and relatively lower trade credit granted and obtained.

Results suggest that policies supporting societal trust may also foster business development and that when dealing with clients or suppliers from different trustworthy environments, firms may have to adapt their business models to incorporate trust differences between business environments.

Firstly, the comprehensive analysis of the impact of trust on working capital management and cash holdings while controlling for different firm-level and country-level known determinants of short-term financial management. Secondly, it addresses a European sample of unquoted, medium-sized firms. Thirdly, it studies the combined effect of trust and financial constraints and trust and corruption.

In this study, we aim to define a new ecological financial pecking order. We examine how SMEs' adherence to the environment in the Mediterranean region is impacted by their financial resources and how women Entrepreneurship could play a moderating role in this relationship.

Our data are pooled cross-sectional firm level data across 14 Mediterranean countries, with a total of 5,949 observations over the period from 2018 to 2020. We look into the moderating influence of SMEs’ female ownership on the financial sources-environmental engagement link using GLS estimations. To reach our aim we focus on seven funding sources and develop a green engagement construct using JCA. Besides, we distinguish between the least and most environmentally engaged companies in the EU and its neighborhood and compare the different interactions and possible moderations.

Results show that government subsidies foster environmental engagement, followed by supplier credits with a less significant positive impact. The bank credits have the least significant beneficial influence, while non-bank financial institutions have a non-significant effect. We underline that environmental engagements are hindered by the other funds, issued bonds and internal funds.

SMEs in the Mediterranean region, particularly the less environmentally conscious, require strong legal frameworks to enforce environmental responsibility and raise awareness. Integrating less environmentally committed EU SMEs into state subsidy strategies is a chance to improve environmental responsibility in the region.

To our knowledge, there are no prior studies that present a detailed financial structure and environmental management investigation for SMEs within the Mediterranean region while considering the moderating effect of women's entrepreneurship.

The purposes of the paper are as follows: (1) Analysing the effect of financial inclusion on financial stability. (2) Examining whether financial inclusion non-linearily impacts financial stability. (3) Analysing whether the effect of financial inclusion varies across quantiles of financial stability. (4) Investigating whether dimensions of financial inclusion affect financial stability differently. (5) Examining whether the effect of financial inclusion on financial stability depends on competitiveness of the banking industry.

Using panel data for 19 African countries for the period 2006–2022, we first developed multidimensional index of financial inclusion using two-stage indexing approach. Then employing panel semiparametric regression, we analyse the non-linear nexus between financial stability and financial inclusion. We further employ panel quantile regression to investigate the differential effect of financial inclusion at different quantiles of financial stability. We also employed two-stage least squires, and alternative measurement of financial stability as robustness checks.

Employing panel semiparametric regression, we demonstrate that the financial inclusion-stability nexus exhibits non-linearity: below (above) threshold level financial inclusion promotes (reduces) financial stability. Employing panel quantile regression, we find that the effect of financial inclusion increases at higher quantiles of financial stability. We further demonstrate that the effect of financial inclusion on financial stability is pronounced in a more competitive bank industry. The findings are robust to two-stage least squares estimation, and alternative measurement of financial stability. The results suggest that keeping a balance between achieving stable and inclusive financial system, and ensuring a competitive banking industry are essential to achieve bank soundness while promoting financial inclusion.

The study incrementally contributes to the literature related to the financial inclusion – stability nexus in four-fold. First, unlike studies that relied on some indicators of financial inclusion, we employed the effect of multidimensional financial inclusion on financial stability and further examined whether or not the effect varies across financial inclusion dimensions. Second, unlike studies that assumed a linear nexus between financial inclusion and stability, employing panel semiparametric regression, we investigated for non-linear relationship between the two. Employing a novel panel quantile estimation approach, we further scrutinised whether the effect of financial inclusion varies across quantiles of financial stability. Third, to our knowledge, our study is the first to examine the effect of multidimensional financial inclusion on bank soundness in Africa.

1. We find a non-linear nexus between financial inclusion and financial stability.

2. Financial inclusion below (above) threshold enhances (reduces) financial stability.

3. The effect of financial inclusion is pronounced at higher quantiles of financial stability.

4. The effect of financial inclusion on financial stability depends on bank competition.

5. The results hold across different dimensions of financial inclusion.

We find a non-linear nexus between financial inclusion and financial stability.

Financial inclusion below (above) threshold enhances (reduces) financial stability.

The effect of financial inclusion is pronounced at higher quantiles of financial stability.

The effect of financial inclusion on financial stability depends on bank competition.

The results hold across different dimensions of financial inclusion.

A correlation has been shown in the literature between credit constraints and the adoption of agricultural technologies, technical efficiencies and measures for adapting to climate change. The relationship between credit constraints, risk management strategy adoption and income, however, is not well understood. Consequently, the purpose of this study was to investigate how credit constraints affect the income and risk management practices adopted by Northern Nigerian maize farmers.

Cross-sectional data were collected from 300 maize farmers in Northern Nigeria using a multi-stage sampling technique. Descriptive statistics, seemingly unrelated regression and double hurdle regression models were the analysis methods.

The results showed that friends and relatives, banks, “Adashe”, cooperatives and farmer groups were the main sources of credit in the study area. The findings also revealed that the sources of risk in the study area included production risk, economic risk, financial risk, institutional risk, technological risk and human risk. In addition, the risk management strategies used to mitigate observed risks were fertilizer application, insecticides, planting of disease-resistant varieties, use of herbicides, practising mixed cropping, modern planning, use of management tools as well as making bunds and channels. Furthermore, we found that interest rate, farm size, level of education, gender and marital status were significant determinants of statuses of credit constraints while the age of the farmer, gender, household size, primary occupation, access to extension services and income from maize production affected the choice and intensity of adoption of risk management strategies among the farmers.

The study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income.

The study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income. It therefore recommends that financial service providers should be engaged to design financial products that are tailored to the needs of smallholder farmers in the study area.

This paper incorporates the role of constraints in influencing farmers’ decisions to uptake credits and subsequently their adoption behaviours on risk management strategies. The researcher approached the topic with a state-of-the-art method which allows for obtaining more reliable results and hence more specific contributions to research and practice.

Introduction: Commercial banks play a vital role in the global economy, facilitating economic growth and providing essential financial services. As key intermediaries between savers and borrowers, these institutions operate in a dynamic and complex environment characterised by various risk factors that can significantly impact their profitability and overall stability. Understanding the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability is crucial for effective risk management strategies and the development of appropriate regulatory frameworks.

Purpose: Commercial banks play a critical role in the global economy by facilitating economic growth and providing financial services. This study examines the interconnected relationships between credit risk, interest rate risk, liquidity risk, and profitability in commercial banking.

Methodology: The sample consists of licenced scheduled commercial banks on the Bombay Stock Exchange (BSE) from 2015 to 2022. Using the Smart PLS-SEM 3.0 path analysis technique, the study evaluates the combined influence of these risk factors on profitability and provides evidence-based recommendations for risk management strategies.

Findings: The findings can assist banks in enhancing their risk management practices, and regulators in developing appropriate regulatory frameworks. By understanding the key risk factors and their impact on profitability, banks and regulators can mitigate risks, enhance transparency, and promote stability within the banking sector.

Significance/value: The value of this study lies in its focus on the interconnectedness of risk factors, profitability, and the potential implications for decision-making, risk management strategies, regulatory frameworks, and the overall stability of the commercial banking sector.