Assessment of the impact of bank lending on business entities’ performance using structural equation modeling

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The paper aims to assess the influence of bank lending on the performance of enterprises in the real sector. The relevance of the study for different countries, including Kazakhstan, Kyrgyzstan and Ukraine, is shown. Structural equation modeling of the impact of bank lending on the performance of enterprises in the real sector is carried out using Ukraine as an example. Six key indicators of real sector enterprises’ performance for the period of 2007–2019 were selected as an information basis of the study. To assess the abovementioned impact, structural equation modeling was used, i.e., the Statistica program was selected as a software tool to evaluate the resulting model’s adequacy and determine the level of statistical significance of its parameters. The obtained results prove that the business lending sector in Ukraine has significant potential for its development, which ultimately will have a positive effect on the efficiency of the real sector enterprises. Moreover, adopting a balanced state policy in the sector of corporate bank lending can give impetus to the development of the domestic sector of real production and help Ukrainian enterprises overcome the crisis caused by COVID-19.

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    • Figure 1. Verifying the model of the relationship between indicators of the business lending sector, the efficiency of business entities and their capital structure
    • Table 1. Factors (indicators) for analysis
    • Table 2. Statistical data for structural equation modeling
    • Table 3. Normalized initial data for modeling
    • Table 4. Structural equation modeling results of the indicators’ relationship
    • Table 5. Main summary statistics
    • Table 6. Noncentrality indices of the model
    • Table 7. Single sample indices of the relationship between the indicators
    • Conceptualization
      Dinara Kerimkulova, Oleksii Muravskyi
    • Investigation
      Dinara Kerimkulova, Oleksii Muravskyi
    • Methodology
      Dinara Kerimkulova, Minara Nazekova, Aizada Sovetbekova, Galyna Krasovska
    • Software
      Dinara Kerimkulova, Galyna Krasovska
    • Visualization
      Dinara Kerimkulova, Galyna Krasovska
    • Writing – review & editing
      Dinara Kerimkulova, Oleksii Muravskyi
    • Formal Analysis
      Minara Nazekova, Aizada Sovetbekova, Galyna Krasovska
    • Validation
      Minara Nazekova, Aizada Sovetbekova, Oleksii Muravskyi
    • Writing – original draft
      Minara Nazekova, Aizada Sovetbekova, Galyna Krasovska
    • Data curation
      Oleksii Muravskyi, Galyna Krasovska
    • Supervision
      Oleksii Muravskyi