Mind the financing gap: Enhancing the contribution of intangible assets to productivity

Demmou, Lilas; Franco, Guido

doi:10.1787/7aefd0d9-en

Cited by 8 publications

(8 citation statements)

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“…Specifically, we provide empirical evidence about the role of intangible assets in helping SMEs gain access to both debt and equity finance. This finding adds value to a strand of literature linking intangibles to firm performance (Anderson & Eshima, 2013;Cucculelli & Bettinelli, 2015;Demmou & Franco, 2021;VanderPal, 2019). Building on this, we demonstrate that intangibles are also linked to improved access to capital resources, which could be one of the key mechanisms that strengthens the competitive advantages of SMEs and helps them achieve better performance.…”

Section: Discussionsupporting

confidence: 66%

Do intangible assets help SMEs in underdeveloped markets gain access to external finance?—the case of Vietnam

Nguyen

2023

Small Bus Econ

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The credit frictions encountered by small and medium-sized enterprises (SMEs) have been widely examined in the entrepreneurship literature. Although theory suggests that asset tangibility helps increase firms’ borrowing capacity because it allows creditors to take possession of a firm’s assets more easily, this paper provides new evidence about the role of intangible assets in reducing credit frictions for SMEs. Using an extensive dataset of more than 155,852 SMEs in Vietnam and a multivariate probit model, we find that identifiable intangible assets improve firm access to debt and equity finance. Interestingly, it is found that the friction-reducing effect of intangibles is stronger on debt finance than on equity finance, suggesting non-equivalent distributional effects of intangible assets on firm capital structure. Moreover, firm age and size can moderate the association between intangibles and access to the two sources of external finance.

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Section: Discussionsupporting

confidence: 66%

Do intangible assets help SMEs in underdeveloped markets gain access to external finance?—the case of Vietnam

Nguyen

2023

Small Bus Econ

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“…However, deals on intangibles tend to be complex (Dietderich and Mousavi, 2014) and the cost of dispute resolution mechanisms can be high, particularly for SMEs. The use of informal out-of-court procedures, which typically avoid the procedural complexities and timelines of court proceedings, can reduce costs and speed up processes (Demmou and Franco, 2021a). This annex displays the 13 sub-indicators that form the OECD Insolvency regime indicator.…”

Section: Box 7 Intangible Assets and Insolvency Regimesmentioning

confidence: 99%

Enhancing insolvency frameworks to support economic renewal

2022

OECD Economics Department Working Papers

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ENHANCING INSOLVENCY FRAMEWORKS TO SUPPORT ECONOMIC RENEWAL UnclassifiedOECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.Comments on Working Papers are welcomed, and may be sent to the Economics Department, OECD,

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“…Overview Findings Recommendations 1 Data: An essential ingredient to digital transformation 2 Firms use -and are transformed by the use of -data 2.1 Firms increasingly generate, collect and use data 2.2 Using data can boost innovation, productivity and enable new business models 2.3 Some firms use data more than others 3 The use of data is shaping markets 3.1 Investments in data and other intangible assets have been linked to productivity dispersion between firms in industries 3.2 Growing investment in intangibles like data may be increasing industry concentration, with benefits flowing to larger firms 3.3 Data have reshaped competitive dynamics across the OECD…”

Section: Foreword Executive Summarymentioning

confidence: 99%

Data shaping firms and markets

2022

OECD Digital Economy Papers

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This report analyses how firms use data, and how that use shapes markets. It presents policy lessons to encourage the more even use of data in the business population, which is necessary to realise the potential of data for growth and well-being. This report was drafted by Angela Attrey and James Mancini, under the guidance of Antonio Capobianco and Jeremy West, and the supervision of Audrey Plonk, Head of the OECD Digital Economy Policy Division. The report benefits from the input and research of focal points across the OECD Secretariat, including the Directorate for Science, Technology and Innovation (Sara Calligaris, Flavio Calvino, David Gierten, Simon Lange and Vincenzo Spiezia), the Centre for Entrepreneurship, SMEs, Regions and Cities (Marco Bianchini, Lucia Cusmano, Sandrine Kergroach and Lora Pissareva), the Directorate for Financial and Enterprise Affairs (Oliver Garrett-Jones and Iota Nassr) and the Economics Department (Lilas Demmou). The insights from participants of the virtual OECD Workshop "Data Shaping Firms and Markets", held on 11 May 2022, are gratefully acknowledged. Angela Gosmann and Mark Foss provided editorial support. This publication is a contribution to IOR 1.3.1.2.3 of the 2021-2022 Programme of Work and Budget of the Committee on Digital Economy Policy. This report was approved and declassified by the Committee on Digital Economy Policy on 27 September 2022 and prepared for publication by the OECD Secretariat.This publication is a contribution to Phase III of the OECD Going Digital project, which aims to provide policy makers with the tools they need to design and implement better data policies to promote growth and well-being.For more information, visit www.oecd.org/going-digital.

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Mind the financing gap: Enhancing the contribution of intangible assets to productivity

Cited by 8 publications

References 93 publications

Do intangible assets help SMEs in underdeveloped markets gain access to external finance?—the case of Vietnam

Do intangible assets help SMEs in underdeveloped markets gain access to external finance?—the case of Vietnam

Enhancing insolvency frameworks to support economic renewal

Data shaping firms and markets

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