LEADER 02228nam a2200325 i 4500001    99131235015406421
005    20231012133447.0
006    m     o  d
007    cr |||||||||||
008    231012s2023    dcu     o     000 0 eng d
024 7  10.1596/1813-9450-10458
035    (CKB)5850000000362957
035    (NjHacI)995850000000362957
035    (EXLCZ)995850000000362957
040    NjHacI |beng |erda |cNjHacl
050  4 HG4028.D3 |b.D465 2023
082 04 658.1526 |223
100 1  De Nicola, Francesca, |eauthor.
245 10 Bank Ownership and Firm Innovation / |cFrancesca De Nicola, Mariana Iootty, Martin Melecky.
264  1 Washington, D.C. : |bThe World Bank, |c2023.
300    1 online resource (21 pages).
336    text |btxt |2rdacontent
337    computer |bc |2rdamedia
338    online resource |bcr |2rdacarrier
490 1  Policy research working papers
588    Description based on publisher supplied metadata and other sources.
520    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.
650  0 Corporate debt.
700 1  Iootty, Mariana, |eauthor.
700 1  Melecky, Martin, |eauthor.
830  0 Policy research working papers.
906    BOOK