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

Abstract

PurposeThis 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/approachThis 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.FindingsThe 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 implicationsThis study has implications for governments, regulators and policymakers for enhancing access to finance and social capital, and improving corporate performance.Originality/valueThis paper establishes the importance of firms' access to finance and social capital for improving firms' overall performance in the broader context of Southeast Asia.