Time: 13:00-15:00 (UK Time), Wednesday, 22 May 2024
Presenter: Miao He, Xi’an Jiaotong-Liverpool University (XJTLU)
Co-authors: Dr Ye Bai and Dr Fan Liu, Xi’an Jiaotong-Liverpool University (XJTLU); Dr Michalis Stamatogiannis, University of Liverpool Management School
Chair: Professor Hong Bo, SOAS University of London
Online venue: Click here to join the seminar on Teams (For any inquiry about how to join the online seminar, please contact Dr. Meng Xie at xm1@soas.ac.uk)

Abstract
It is widely recognised that access to formal finance is positively associated with firm performance. However, there are few studies, to our knowledge, empirically examining the heterogeneous effects of access to formal finance on firm performance for MSMEs with different attributes. To fill this void, this paper examines the moderating role of a number of firm characteristics in the impact of financial inclusion on MSMEs’ performance by using a unique firm-level survey data on 2,229 MSMEs in China. Clearly, the endogeneity problem could bias the main results, since firms with better performance are also more likely to obtain bank loans. This concern is mitigated by using an instrumental variable that is based on the amount of bank credit per firm in a province. The findings confirm the positive impact of financial inclusion on MSMEs’ performance. Specifically, the availability of formal finance plays a vital role in the development of more financially excluded MSMEs (i.e., urban, low-tech, and unlisted MSMEs, MSMEs that are far away from the high-speed railway station, MSMEs whose owners are worse-educated and less experienced, and MSMEs located in regions with lower economic development). The moderating effects results support the convergence effects. 

Presenter

Miao He
Miao is a final-year doctoral candidate at the International Business School Suzhou (IBSS), Xi’an Jiaotong-Liverpool University (XJTLU) in China. She is fully funded by the XJTLU PhD scholarship. Miao’s research interests include but are not limited to the areas of financial inclusion, SMEs, and land reform.

Co-authors

Dr Ye Bai
Ye Bai is Senior Associate Professor in Finance at the International Business School Suzhou, Xi’an Jiaotong-Liverpool University (XJTLU). Prior to joining XJTLU in 2018, she worked for University of Nottingham as Assistant Professor in Finance. Ye holds a PhD from Loughborough University, where she focused her research on portfolio diversification and market integration. Ye’s current research interests include emerging financial markets, financial integration, financial inclusion and interbank market, etc. Her recent publications have appeared in internationally reputable journals, including Journal of Banking and Finance, Journal of International Money and Finance, International Review of Financial Analysis, Journal of International Financial Markets, Institution and Money, among others. Ye’s current stream of research on interbank market is funded by grants from DFID-ESRC Growth Research programme. Ye is an External Research Fellow of the Centre for Global Finance at SOAS University of London.
 
Dr Fan Liu
Fan Liu is Assistant Professor in Economics at the International Business School Suzhou (IBSS), Xi’an Jiaotong-Liverpool University (XJTLU). She obtained her Ph.D. in Economics from the University of Iowa. Her research focuses on the areas of financial inclusion and resilience, financial intermediation, Innovation and FinTech, macroeconomics, small business entrepreneurship (SMEs), and household finance. Dr Liu has published in leading research journals, e.g. Journal of Economic Behavior Organization, Emerging Markets Review, and Empirical Economics. Dr Liu is currently Associate Editor for Humanities & Social Sciences Communications (SSCI).
 

Dr Michalis Stamatogiannis
Michalis Stamatogiannis is a Senior Lecturer in Finance at the University of Liverpool Management School since 2016. Prior to this he was a Lecturer in Economics at the University of Bath from 2012 to 2015. From 2009 to 2012, he was a Lecturer and Researcher at the Department of Economics, Econometrics and Finance at the University of Groningen. Michalis holds a PhD in Econometrics from the University of Nottingham, an MSc in Economics from the University of York and a BSc in Economics from the University of Cyprus. His research interests lie in the areas of time series econometrics and asset pricing. He has worked in applications in finance and macroeconomics. Throughout his career he has taught modules in finance, econometrics, statistics and forecasting .