The Introduction of the Euro and its Effects on Investment欧元的引入及其对投资的影响.pptVIP

Dr. Rainer Haselmann Johannes Gutenberg University Mainz – June 17th, 2009 * Related work Herrera and Minetti JFE (2007) find that relationship finance (duration of credit relationship) promotes innovation finance Benfratello, Schiantarelli, and Sembenelli JFE (2008) show that local banking development matters for the probability of corporate innovations Atanassov, Nanda, and Seru (2005) show that large firms actually prefer market based finance over relationship lending * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *Dr. Rainer Haselmann Johannes Gutenberg University Mainz – June 26th, 2009 *Dr. Rainer Haselmann Johannes Gutenberg University Mainz – June 17th, 2009 Real Effects of Bank Governance: Bank Ownership and Firm Level Innovation Rainer Haselmann Katharina Marsch Beatrice Weder di Mauro 15th Dubrovnik Economic Conference June 24 - June 27, 2009 * Motivation High government involvement in banking sector since financial crisis Financial intermediaries select entrepreneurs – choice affects rate of technological progress (King and Levine 1993 QJE; Levine and Zervos AER 1998) Banking development stimulates the introduction of innovations (Benfratello et al. JFE 2008) Are public or private financial intermediaries better in selecting innovative projects? * Question Theory is ambivalent about the effect of public bank ownership on technological progress: Public banks might foster innovation because of market failures (e.g. asymmetric information/moral hazard/positive externalities) Government bankers’ incentives can result in a misallocation of financial resources (e.g. politicians follow personal goals; government banks want to secure employment – La Porta et al. JF 2002; Sapienza JFE 2004) * Contribution Germany is used as laboratory Industrialized country (e.g. Khwaja and Mian QJE 2005: Pakistan) German financial sector is bank-based Large public banking sector Innovative economy (innovative SMEs) Unique