R&amp;D Investment, Credit Rationing and Sample Selection

Piga, Claudio A.; Atzeni, Gianfranco Enrico

doi:10.2139/ssrn.905536

Cited by 19 publications

(16 citation statements)

References 41 publications

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“…Among these, 249 firms (32.17%) declare having applied for more credit and being denied ( rationed = 1). We then assess how the indicator of borrowing concentration affects the probability of being credit‐constrained by estimating the following bivariate probit model with selection (Piga and Atzeni ):

Pr false(m o r e c r e d i t_{i} = 1 false) = Pr false(β_{0} + β_{1} i n n o p r o d_{i} + β_{2} c o n c_b a n k_{i} + β_{3} X_{i} + u_{i} > 0 false),

Pr false(r a t i o n e d_{i} = 1 false) = Pr false(γ_{0} + γ_{2} c o n c_b a n k_{i} + γ_{3} X_{i} + v_{i} > 0 false) if m o r e c r e d i t_{i} = 1,

where X is the same set of control variables used in the previous subsections, and the error terms u and v are assumed to follow a bivariate standard normal distribution ( u , v ) ∼ N (0, 1) with correlation coefficient ρ = corr( u , v ). Results are reported in Table (columns (1) and (2))…”

Section: Resultsmentioning

confidence: 99%

Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing

et al. 2017

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This paper assesses the role of concentrated bank borrowing in explaining the extensive and intensive margins of export, while accounting for the simultaneous relationship between exporting and innovation. Concentrated bank borrowing proxies for the intensity of the bank-firm relationship and is a strategy often pursued by small and medium enterprises (SMEs) in order to overcome information asymmetries and improve access to external finance. Our results show that a tight relationship between an SME and its main bank increases both the firm's probability of exporting and its export intensity. This positive effect is only marginally mediated by the SME's increased propensity to introduce product innovation. We further discuss the financial and non-financial channels through which the intensity of the bank-firm relationship supports SMEs' international activities.

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Pr false(m o r e c r e d i t_{i} = 1 false) = Pr false(β_{0} + β_{1} i n n o p r o d_{i} + β_{2} c o n c_b a n k_{i} + β_{3} X_{i} + u_{i} > 0 false),

Pr false(r a t i o n e d_{i} = 1 false) = Pr false(γ_{0} + γ_{2} c o n c_b a n k_{i} + γ_{3} X_{i} + v_{i} > 0 false) if m o r e c r e d i t_{i} = 1,

Section: Resultsmentioning

confidence: 99%

Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing

et al. 2017

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“…Other recent related contributions using the same data and indicator are Piga and Atzeni (), Herrera and Minetti (), Benfratello, Schiantarelli, and Sembenelli (), and Becchetti, Castelli, and Hasan ().…”

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confidence: 90%

R&D AND CREDIT RATIONING IN SMEs

Mancusi

Vezzulli

2014

Economic Inquiry

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We study the effects of credit rationing on research and development (R&D) investment using survey and accounting data on a large representative sample of manufacturing small‐ and medium‐sized enterprises (SMEs). Our econometric model accounts for the endogeneity of our credit rationing indicator and employs an innovative theory‐based identification strategy. We find that credit rationing has a significantly negative effect on both the probability to set up R&D activities and on the level of R&D spending (conditioned on the R&D decision), but the overall estimated reduction in R&D spending is largely to be associated with the first effect. (JEL G21, D82, O32, C35)

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“…We carry out the analysis in steps in a way similar to Piga and Atzeni (2007) and Guiso (1998). Firstly, we examine whether gender affects the decision to apply for a loan (hypothesis H1) by using the entire dataset (41,973 observations).…”

Section: Methodsmentioning

confidence: 99%

Does a Manager's Gender Matter When Accessing Credit? Evidence from European Data

2014

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Firms can be credit constrained either because a loan has been denied by the lender or because they decide not to apply for such a loan due to expected rejection. Using a large sample of European small and medium enterprises, we investigate the relationship between gender and credit constraints. Although no evidence is found that financial institutions are biased against female managers, female-run firms are less likely to file a loan application, as they anticipate being rejected. As a consequence, firms managed by women obtain less bank financing.JEL Classifications: A13, G21, J16

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R&D Investment, Credit Rationing and Sample Selection

Cited by 19 publications

References 41 publications

Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing

Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing

R&D AND CREDIT RATIONING IN SMEs

Does a Manager's Gender Matter When Accessing Credit? Evidence from European Data

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