Do bank liquidity shocks hamper firms’ innovation?
| Autor: | Ali Kabiri, Vlad Manole, Mariana Spatareanu |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Estimation
Economics and Econometrics HG Finance Strategy and Management media_common.quotation_subject 05 social sciences Economics Econometrics and Finance (miscellaneous) Monetary economics Market liquidity Small and medium size enterprises 0502 economics and business Industrial relations Value (economics) Specialization (functional) Quality (business) Business 050207 economics 050205 econometrics media_common |
| Zdroj: | International Journal of Industrial Organization. 67:102520 |
| ISSN: | 0167-7187 |
| DOI: | 10.1016/j.ijindorg.2019.06.002 |
| Popis: | This paper highlights the importance of bank-based finance for the innovation activity of UK firms. It identifies both theoretically and empirically how bank shocks affect firms’ innovation. We develop a theoretical model, and test its predictions using a new matched bank-firm-patent dataset for the UK. We find that bank distress during the 2008 and 2011 crises negatively affected firms’ innovation behavior. After carefully controlling for several potential biases in estimation we find that firms whose relationship banks were distressed not only patented less, but those patents were of lower technological value, less original and of lower quality. The negative effect is significantly larger in the case of small and medium size enterprises (SMEs). We also find that banks’ specialization in financing innovation mitigates the impact of bank distress on innovation. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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