Does innovation affect credit access? New empirical evidence from Italian small business lending

Arbeitspapier

In this paper we analyze the access to credit of innovative firms on the price and non-price dimensions of bank lending. Using information from two datasets, we use a propensity score matching procedure to estimate the impact of the innovative nature of firms on: (a) loan interest rates; (b) the probability of having to post collateral; and (c) the probability of overdrawing. Our analysis reveals that banks trade off higher interest rates and lower collateral requirements for firms involved in innovative processes. Further, innovative firms have a lower probability of being credit rationed than their non-innovative peers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IAW Diskussionspapiere ; No. 104

Classification and Topics

• Classification: Wirtschaft ; Asymmetric and Private Information; Mechanism Design ; Interest Rates: Determination, Term Structure, and Effects ; Market Structure, Pricing, and Design: General ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: innovative firms ; interest rate ; firm's financing ; relationship lending

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bellucci, Andrea ; Favaretto, Ilario ; Giombini, Germana
• Event: Veröffentlichung
• (who): Institut für Angewandte Wirtschaftsforschung (IAW)
• (where): Tübingen
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/107650
• Last update: 10.03.2025, 11:42 AM CET