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The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

This thesis consists of three essays on the branches of global banks, which are the basic units of the global banking system and have significant implications for the financial stability of each country. To date, the branches of global banks have not received much attention in the literature. However, when we focus on their distinctive characteristics and linkages with local banks, it leads us to important narratives about cross-border capital flows, financial stability, and macroprudential policy. The first essay begins by paying attention to the expansion of the role of global bank branches, and the relationship and differences between local banks and global bank branches. Then, I estimate the determinants of cross-border capital flows through domestic banks and global bank branches, respectively, by using country-level data from the BIS and bank-level data from The Bankers. The results reveal the difference between the domestic banks channel and the global bank branches channel in the determinants of cross-border borrowing, thus highlighting the need to introduce these two channels separately in models dealing with crossborder capital flows. I also examined the factors driving the cross-border flow of the US dollar through intragroup (interoffice) transactions of each global bank group. It shows that the capital adequacy and the density of risky assets of domestic banks affect the size of cross border loans in US dollars for global banks to their branches located in those countries. The second essay highlights the growing significance of global bank branches in the context of financial stability and analyzes the potential risks each local economy may face due to cross-border capital flows driven by global banks. Motivated by empirical evidence in the first essay and further enriched with intuition, I propose a small open economy DSGE model which to the best of my knowledge is the first to distinguish between ‘domestic banks’ and ‘global bank branches’. These bank

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

Purpose – This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). Design/method/approach – The analysis was conducted using random effects models on two data samples. The full sample consists of 19,064 SMEs while the other sample used to estimate the long-term leverage consists of 8,707 SMEs for two years, 2007 and 2013. Findings – The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank has a negative relationship with long-term leverage in SMEs in rural areas. Practical implications – SME owners and policy-makers may benefit from this research amidst the changing banking landscape; policy-makers can help to increase access to other types of funding to SMEs in bank deserts by increasing the volume of governmental loans. Originality/value – To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in earlier literature as a determinant of leverage for SMEs., QC 20211124

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130