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Journal of Engineering and Applied Sciences

Analyzing the Effect of Credit Facilities on Firm Growth: Evidence from Emerging Market
Mahmoud Al-Rdaydeh, Ali Matar, Joriah Muhammed and Haslindar Ibrahim

Abstract: Although, the importance of credit facilities in relation to economic performance has been investigated in many previous studies mainly focusing on developed countries, this study explores the effect of credit facilities on firm growth in Jordan, a developing country albeit with a developed banking system. The study sample comprised 87 Jordanian firms investigated from 2007-2016 using panel data regression. Analysis results indicated a significant and positive relationship between both assets and employment growth and firm size indicators and credit facilities indicating that the study sample was comprised of mainly large firms without financial constraints. The results of this research have an important implication for the banking industry, business sector and policy makers in Jordan.

How to cite this article
Mahmoud Al-Rdaydeh, Ali Matar, Joriah Muhammed and Haslindar Ibrahim, 2019. Analyzing the Effect of Credit Facilities on Firm Growth: Evidence from Emerging Market. Journal of Engineering and Applied Sciences, 14: 195-204.

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