Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197401
Authors: 
Białek-Jaworska, Anna
Opolski, Krzysztof
Year of Publication: 
2018
Citation: 
[Journal:] e-Finanse: Financial Internet Quarterly [ISSN:] 1734-039X [Volume:] 14 [Year:] 2018 [Issue:] 1 [Pages:] 12-26
Abstract: 
The article presents motives and purposes of provision of loans by non-financial enterprises. Moreover, it describes how provision of loans influences both the internal and market situation of lenders who are not listed on the stock exchange. We point out effects of provision of loans by non-financial enterprises, while, based on literature review, we signal the market reaction (positive and negative) to information about lending activities of non-financial enterprises. On the one hand, the phenomenon of providing loans by non-financial enterprises may be considered positive, as it provides financing for entities with limited access to bank loans or provides liquidity management in a business group. On the other hand, it may lower the viability and amount of investment of companies providing loans. Loans obtained from outside the business group enable borrowers and the business group to use a tax shield, yet they increase the bankruptcy costs and limit the investment of lenders. An empirical study was carried out with the use of a panel approach (generalized method of moments GMM). The research sample includes 31 075 observations from the financial statements of limited liability companies and unlisted joint-stock companies for the years 2003-2014.
Subjects: 
private firms
intra-corporate loans
inter-group loans
strategy
JEL: 
G32
M21
O16
Persistent Identifier of the first edition: 
Document Type: 
Article

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