Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/340629 
Year of Publication: 
2025
Citation: 
[Journal:] Borsa İstanbul Review [ISSN:] 2214-8469 [Volume:] 25 [Issue:] 6 [Year:] 2025 [Pages:] 1137-1151
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper investigates how financial constraints impede firms' ability to achieve high growth. Using a comprehensive panel dataset of Turkish firms from 2012 to 2021, we analyze the relationship between short-term debt intensity - our proxy for financial constraints - and firms' likelihood of becoming high-growth enterprises, measured by turnover and employment expansion. Employing rigorous econometric techniques, including fixed-effects logit, instrumental variable estimations, and dynamic panel GMM, we find that higher short-term debt significantly reduces the probability of high growth. Our findings highlight the crucial role of external financial frictions in shaping firm growth dynamics, particularly in emerging markets characterized by underdeveloped long-term credit markets. These results offer new insights into the broader literature on high-growth firms by integrating external financing constraints into the growth narrative.
Subjects: 
Financing constraints
Firm dynamics
High-growth firms
SMEs
JEL: 
C40
C55
C60
C81
L25
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
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