Does Financing Spur Small Business Productivity? Evidence from a Natural Experiment

• 成果类型: Article
• 署名作者: Krishnan, Karthik; Nandy, Debarshi K.; Puri, Manju
• 署名单位: Northeastern University; Brandeis University; Duke University; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhu087
• 发表日期: 2015
• 页码: 1768
• 关键词: cash flow sensitivities; Regression discontinuity designs; industry structure; INVESTMENT; FIRMS; deregulation; constraints; GROWTH; COMPETITION; ECONOMICS

摘要

We analyze how increased access to financing affects firm total factor productivity (TFP) by exploiting a natural experiment following interstate banking deregulations that increased access to bank financing. We find that firms' TFP increases after their states implement these deregulations. Using a regression discontinuity approach based on the Small Business Administration's funding eligibility criteria, we show that TFP increases following the deregulations are significantly greater for financially constrained firms. Our results suggest that greater access to financing allows financially constrained firms to invest in productive projects that may otherwise not be taken up.