Bank Branches, Competition, and Firm Innovation : Evidence from China
This paper merges industrial enterprise database, patent database, and financial licensing data to show that more bank branches near a firm promote its innovation. Mechanism analysis suggests that the reason is that more branches around firms reduce their financing constraints rather than their financial costs. Heterogeneous analysis shows that joint-stock commercial bank branches’ increase is the main driver of the effect above. The effect is more significant in innovative industries and industries that rely more on external financing. Our paper shows the importance of rational control of the region's financial development structure during banking sector development
Year of publication: |
[2023]
|
---|---|
Authors: | Kong, Junhao |
Publisher: |
[S.l.] : SSRN |
Subject: | China | Bank | Innovation | Wettbewerb | Competition | Filiale | Branch office | Industrie | Manufacturing industries | Industrieforschung | Industrial research |
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