清华五道口田轩论文-被列为世界前1%的高被引（英文）-21页.pdfVIP

Journal of Financial Economics 115 (2015) 189 –209 Contents lists available at ScienceDirect Journal of Financial Economics journal homepage: /locate/jfec Does banking competition affect innovation? $ Jess Cornaggia a, Yifei Mao b, Xuan Tian b,c,n, Brian Wolfe d a McDonough School of Business, Georgetown University, USA b Kelley School of Business, Indiana University, USA c PBC School of Finance, Tsinghua University, China d School of Management, State University of New York at Buffalo, USA a r t i c l e i n f o a b s t r a c t Article history: We exploit the deregulation of interstate bank branching laws to test whether banking Received 25 September 2012 competition affects innovation. We find robust evidence that banking competition Received in revised form reduces state-level innovation by public corporations headquartered within deregulating 9 July 2013 states. Innovation increases among private firms that are dependent on external finance Accepted 13 August 2013 and that have limited access to credit from local banks. We argue that banking Available online 8 September 2014 competition enables small, innovative firms to secure financing instead of being acquired JEL classifications: by public corporations. Therefore, banking competition reduces the supply of innovative G21 targets, which reduces the portion o