Can information and communication technology promote venture creation? A cross-country study using an instrument variable approach

Lee, Ming-Hsuan; Lio, Monchi

doi:10.1177/0266666917697368

Cited by 8 publications

(6 citation statements)

References 49 publications

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“…This section presents the empirical results of the basic and mechanism models. Considering that the bank-level individual effects are probably unobservable and correlated with some explanatory variables, we follow previous works, such as [9,44], to choose fixed effect models for regression.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…In 2020, the Chinese government announced guidelines to improve the mechanisms for the market-based allocation of production factors, which defined data as the fifth-largest factor in production after land, labor, capital and technology. The combination of data and digital technologies helps to narrow the information differences and improve the efficiency of information management [9]. In practical terms, digital data typically record all kinds of customer information online (e.g., default history, associated personnel) and generate sustainable data trails when electronic transactions happen, thereby increasing transparency, sustainability and robustness in predicting risks and performance [32].…”

Section: Digital Innovation and Spillovermentioning

confidence: 99%

“…There are a large number of relevant studies focusing on the financial contribution of digitalization. For example, digitalization has positive impacts on reducing agency or transaction costs [4,[7][8][9][10][11], enhancing financial access and inclusion [12,13] and improving the performance of both the financial sector and inclusive sector [8,[14][15][16]. However, few studies refer to the sustainability of financial inclusion, especially in banks.…”

Section: Introductionmentioning

confidence: 99%

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Can Digitalization Foster Sustainable Financial Inclusion? Opportunities for Both Banks and Vulnerable Groups

Chu

et al. 2023

Sustainability

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Financial inclusion is a crucial link in achieving the Sustainable Development Goals (SDGs). Strengthening the capability of financial institutions to provide inclusive financial services can help to narrow the inequality gap and increase access to opportunities. Digitalization, with its competitive advantages and rapid growth, may be a powerful tool to foster financial inclusion and sustainable development. This paper examines the effects of bank digitalization on sustainable financial inclusion and explores two underlying incentive mechanisms in banks: profit driven and risk aversion. We construct a basic model and a mechanism model and exploit a nonlinear attempt, heterogeneous estimation as well as supplementary variable and instrument variable methods for a robustness test. The results of the basic model demonstrate that bank digitalization has significant positive effects on financial inclusion and the current financial inclusive effects are sustainable. The mechanism models designed as the mediation effect panel model suggest that digitalization enables banks to expand the business probability frontier of profit-driven behavior and pursuit of credit portfolio diversity in risk aversion behavior, thereby promoting sustainable financial inclusion. As a result of digitalization, vulnerable groups can benefit from sustainable financial inclusion, while financial inclusion feeds back into banks’ sustainable development. This paper conforms to the trend of the development of digitalization and provides theoretical and empirical support for banks to build digitalization and realize sustainable financial inclusion, which contributes to the “triple-win” financial ecology for improving banks’ performance, increasing the rights of vulnerable groups and promoting sustainable development throughout society.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

Section: Digital Innovation and Spillovermentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Can Digitalization Foster Sustainable Financial Inclusion? Opportunities for Both Banks and Vulnerable Groups

Chu

et al. 2023

Sustainability

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“…Second, our exploration of treatment effects also considers the effects of coding/programming classes. Evidence of a positive relationship between computer ownership and entrepreneurship (Fairlie, 2006), and the positive impact of information and communication technology development on venture creation (Lee & Lio, 2018), suggests that taking computer coding courses may have a treatment effect on entrepreneurship, as computer ownership, information and communication technology, and computer coding skills are complements. As such, our findings will inform the extent to which a high school course in computer coding/programming a so-called Science, Technology, Engineering and Mathematics (STEM) discipline can induce entrepreneurship (Henrekson & Rosenberg, 2001; Winkler et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

The Treatment Effect of Business Education on the Supply of High School Entrepreneurs in Atlanta and New Orleans

Price

Surprenant

2021

The American Economist

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Strengthening the pathway to entrepreneurship for high school students could be important in regions of the United States where economic mobility is low. We examine the impact of high school business education on the decision to be a self-employed entrepreneur in two southeastern urban U.S. high schools. We appeal to a potential-outcomes framework to estimate the treatment effect of having taken a business and coding/programming course in high school on actually being a self-employed entrepreneur, and planning to do so in the future. We find evidence that having taken a business course in high school increases the likelihood of actually being a self-employed entrepreneur, and on planning to be one in the future. Our results suggest that, at least in Atlanta and New Orleans, urban high school business education can be effective in increasing the supply of entrepreneurs, which could improve economic mobility in these urban regions. JEL Classification: C14, C21, E10, I26, J01, J20, J40, M13

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“…40% of European companies received VC investments in 2018 were operating in ICT sector. [12] As nowadays COVID-19 is changing globalization processes and rules of business, we assume that the venture capital systems and ICT sectors are also strongly affected by pandemic.…”

Section: Introductionmentioning

confidence: 99%

The impact of lending availability and conditions for SMEs on the global development of venture financing systems

2021

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Research background: The current situation, which caused global economy recession, has shown that all participants of the venture capital market are not ready for such occasions. Small and medium-sized businesses found themselves in a in a pickle that completely limited the ability to conduct business in most sectors of the economy and venture investors had to urgently reassess their capabilities and their requirements for investment objects. Different events have been constantly influencing the venture financing system to change and develop during decades of its existence. The most important changes are happening today in new world order dictated by COVID-19. Purpose of the article: The aim of this article is to analyse the current state of venture financing, find out how VC is related to the ICT development in European countries, compare VC to other lending mechanisms for SMEs and assume how the global venture industry may be changed by global isolation. Methods: The ARDL model for panel data is used to assess the impact of ICT developments on VC. Comparative and statistical analysis of available datasets on financing mechanisms is conducted. Findings & Value Added: The results show that the increase in value-added in the ICT sector is driving the growth of venture capital in leading countries in terms of innovation activity. Venture capital will be forced to transform towards globalization and centralization, but with the delegation of authority to local representatives, through new communication forms. Countries with high ICT development may be more attractive for venture financing.

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Can information and communication technology promote venture creation? A cross-country study using an instrument variable approach

Cited by 8 publications

References 49 publications

Can Digitalization Foster Sustainable Financial Inclusion? Opportunities for Both Banks and Vulnerable Groups

Can Digitalization Foster Sustainable Financial Inclusion? Opportunities for Both Banks and Vulnerable Groups

The Treatment Effect of Business Education on the Supply of High School Entrepreneurs in Atlanta and New Orleans

The impact of lending availability and conditions for SMEs on the global development of venture financing systems

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