Loan availability and investment : can innovative companies better cope with loan denials?


Müller, Elisabeth ; Reize, Frank


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URL: https://ub-madoc.bib.uni-mannheim.de/2932
URN: urn:nbn:de:bsz:180-madoc-29325
Document Type: Working paper
Year of publication: 2010
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: O32 G31 G21 ,
Subject headings (SWD): Deutschland , Investition , Klein- und Mittelbetrieb , Fremdkapital , Kredit , Innovation , Risikokapital , Private Equity
Keywords (English): Investment , loan availability , innovation , private equity
Abstract: This study examines the consequences of loan denials for the investment performance of small and medium-sized German enterprises. As a consequence of a loan denial, innovative companies experience a smaller drop in the share of actual to planned investment than non-innovative companies. The non-randomness of loan denials is controlled for with a selection equation employing the intensity of banking competition at the district level as an exclusion restriction. We can explain the better performance of innovative companies by their ability to increase the use of external equity financing, such as venture capital or mezzanine capital, when facing a loan denial.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Müller, Elisabeth ; Reize, Frank (2010) Loan availability and investment : can innovative companies better cope with loan denials? Open Access [Working paper]
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