2024 年 13 巻 p. 1-16
The purpose of this paper is to fill two critical research gaps in the study of cross-border lending determinants by financial institutions. The first research gap is that a few previous studies have analyzed normative factors such as institutional and cultural distance in financial institutions' lending decisions. The second research gap is that previous studies have not analyzed financial institutions' decision-making separately into space (distance) and place (context) effects. The major scope of this research is the second research gap. This study conducts an empirical analysis applying a four-step hierarchical multiple logistic regression model based on 4,928 lending judgment observations of 176 financial institutions that made lending decisions on 28 liquefied natural gas (LNG) projects. What this study empirically found is that financial institutions make lending decisions influenced not only by economic factors, but also by normative factors. In addition, we found that the influence of the normative factor was confirmed not only in the space (distance) effect but also in the place (context) effect. This study focuses on making theoretical contributions and ensuring research originality through the identification of critical research gaps by a thorough review of previous studies. The limitation is that the research applies a logistic regression model with dependent variable being a binary value, 1 for lending and 0 otherwise. If the loan amount, which is a continuous variable, can be used as the dependent variable, it will be possible to estimate the magnitude of the impact of other variables.
