This study aims to study the bank concentration effect on the growth of Pakistani non-financial companies for the period, 2006 to 2017. The sample size consists of twenty-ninebanks. Profit, firm size and firm liquidity were taken as the control variables. The aggregate data of the firm growth and control variables was taken. The descriptive statistics, correlation and regression analysis were applied to generate and interpret the results. Results indicated the negative significant effect of profit and firm size on the firm growth while the firm liquidity depicted positive insignificant effect. The bank concentration was found to have significant positive effect on the firm growth suggesting that the high level of bank concentration may likely to decrease information asymmetry of bank with the borrowers thus having favorable impact on access of the firms to credit availability. Results of this study may also aid managers and academicians to better understand effects of bank concentration in stimulating the firm growth in different industries.
Bank Concentration, Firm Growth, Profit, Firm Size, Firm Liquidity