Does banking competition affect innovation?

• 成果类型: Article
• 署名作者: Cornaggia, Jess; Mao, Yifei; Tian, Xuan; Wolfe, Brian
• 署名单位: Georgetown University; Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Tsinghua University; State University of New York (SUNY) System; University at Buffalo, SUNY
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.09.001
• 发表日期: 2015
• 页码: 189-209
• 关键词: Banking competition; INNOVATION; Access to finance; Mergers and Acquisitions

摘要

We exploit the deregulation of interstate bank branching laws to test whether banking competition affects innovation. We find robust evidence that banking competition reduces state-level innovation by public corporations headquartered within deregulating states. Innovation increases among private firms that are dependent on external finance and that have limited access to credit from local banks. We argue that banking competition enables small, innovative firms to secure financing instead of being acquired by public corporations. Therefore, banking competition reduces the supply of innovative targets, which reduces the portion of state-level innovation attributable to public corporations. Overall, these results shed light on the real effects of banking competition and the determinants of innovation. (C) 2014 Elsevier B.V. All rights reserved.