THE EFFECTS OF BANK RELIABILITY AND GOVERNMENT SUPPORT ADEQUACY ON ENTERPRISES’ FINANCIAL RESOURCE ALLOCATION STRATEGIES IN CRISIS PERIOD: A QUANTITATIVE RELATIONSHIP ANALYSIS

Abstract

This study aims to provide in-depth information on financial resource allocation strategies, which have greatly helped enterprises and all enterprises and have become increasingly important in eliminating many negativities such as rapidly changing market conditions, uncertainties, etc. caused by crisis periods such as war, pandemic, etc. in recent times. In this study, first the strategies of enterprises during crisis periods based on Game Theory will be discussed. Besides, the effects of reliability of banks and adequacy of government incentives on entrepreneurs' financial resource allocation decisions during crisis periods will be explained by the results of relation-based regression analysis. The data to be used to test the hypotheses of this research is taken from the GEM (Global Entrepreneurship Monitor) and the Global Competitiveness Report of the World Economic Forum, which provides data on the financial systems of countries, is also used in the study. The data of entrepreneurs who engaged in entrepreneurial activity between 2019 and 2024 making a profit for more than 3.5 years, was used. In the study, 77 country data from GEM was used at the institutional level. The data was gathered from 15,000 company executives worldwide. As in the GEM data, the GCI (Global Competitiveness Index) between 2019 and 2024 is used for the study. All hypotheses are accepted in the study. Thus, both of two independent variables (reliability of banks and adequacy of government incentives) have impact on the dependent variable “the strategic management capability of enterprises in allocating financial resources during crisis period”. Yet, adequacy of government incentives has more impact on “the strategic management capability of enterprises in allocating financial resources during crisis period” than reliability of banks. To sum, this study draws attention to the importance of financial resource allocation strategies of enterprises during the crisis period and encourages future studies to test variables different from the independent variables of the study.