TY -
GEN
AU - De Nicola, Francesca
AU - Iootty, Mariana
AU - Melecky, Martin
TI -
Bank Ownership and Firm Innovation
PB - The World Bank
KW - Bank Ownership Impact on Innovation
KW - DEBT Markets
KW - Finance and Financial Sector Development
KW - Firm Innovation
KW - Foreign Banks
KW - International Finance Corporation
KW - Legal Origins and Bank Stability
KW - New Products and Services
KW - Radical Innovation
KW - State Owned Banks
PY - 2023
N2 - This paper studies the effect of bank ownership on product innovation by borrowing firms, highlighting the role of the state, foreign, and combined foreign-state bank ownership. It uses Enterprise Survey data for more than 22,000 firms in 49 countries from 2016 to 2020, linked to Fitchconnect data on banks: their ownership, soundness indicators, and legal origins. The paper confirms that a firm's access to bank credit is associated with a greater probability of product innovation, even when adjusting for possible reverse causality. If the credit is provided by a state-owned bank, the probability that the borrowing firm will innovate increases. The analysis does not find a similarly positive effect for foreign bank ownership. But when considering the combined effect of foreign state ownership, the results are most statistically and economically significant. Although the results may not be extendable to research and development spending (a key input to innovation), the findings show that foreign state banks can serve as an additional financing vehicle to stimulate radical innovation alongside equity financiers
CY - Washington, D.C
UR - http://slubdd.de/katalog?TN_libero_mab2
ER -