Abstract
| Original language | English |
|---|---|
| Journal | Journal of Financial Economics |
| Volume | 109 |
| Issue number | 3 |
| Pages (from-to) | 835-855 |
| ISSN | 0304-405X |
| DOIs | |
| Publication status | Published - Sep 2013 |
Cite this
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Credit Supply and Corporate Innovation. / Amore, Mario Daniele; Schneider, Cédric; Žaldokas, Alminas .
In: Journal of Financial Economics, Vol. 109, No. 3, 09.2013, p. 835-855.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - Credit Supply and Corporate Innovation
AU - Amore, Mario Daniele
AU - Schneider, Cédric
AU - Žaldokas, Alminas
PY - 2013/9
Y1 - 2013/9
N2 - We present evidence that banking development plays a key role in technological progress. We focus on manufacturing firms' innovative performance, measured by patent-based metrics, and employ exogenous variations in banking development arising from the staggered deregulation of banking activities across US states during the 1980s and 1990s. We find that interstate banking deregulation had significant beneficial effects on the quantity and quality of innovation activities, especially for firms highly dependent on external capital and located closer to entering banks. Furthermore, we find that these results are strongly driven by a greater ability of deregulated banks to geographically diversify credit risk.
AB - We present evidence that banking development plays a key role in technological progress. We focus on manufacturing firms' innovative performance, measured by patent-based metrics, and employ exogenous variations in banking development arising from the staggered deregulation of banking activities across US states during the 1980s and 1990s. We find that interstate banking deregulation had significant beneficial effects on the quantity and quality of innovation activities, especially for firms highly dependent on external capital and located closer to entering banks. Furthermore, we find that these results are strongly driven by a greater ability of deregulated banks to geographically diversify credit risk.
KW - Banking deregulation
KW - Financial development
KW - Innovation
KW - Risk diversification
U2 - 10.1016/j.jfineco.2013.04.006
DO - 10.1016/j.jfineco.2013.04.006
M3 - Journal article
VL - 109
SP - 835
EP - 855
JO - Journal of Financial Economics
JF - Journal of Financial Economics
SN - 0304-405X
IS - 3
ER -