2024-10-27-国际清算银行-银行专业化与企业创新（英）_79页_1mb

Summary of BIS Working Paper No. 1218: Bank Specialization and Corporate Innovation

Core Content

This working paper investigates the relationship between bank specialization and corporate innovation, analyzing how the degree of asset overhang in a sector influences this relationship. The paper uses U.S. syndicated loan data combined with patent data and Belgian credit register data with innovation survey data to explore the heterogeneous effects of bank specialization on innovation.

Main Findings

• Bank specialization has a non-linear effect on corporate innovation, depending on the asset overhang of the sector in which firms operate.
• In sectors with low asset overhang, bank specialization enhances corporate innovation.
• In sectors with high asset overhang, bank specialization impedes corporate innovation.
• The effect size varies significantly, with a one standard deviation increase in bank specialization associated with a 10–15% increase in patent output and citations in low-overhang sectors, and a 10–15% decrease in high-overhang sectors.
• The paper also finds that bank specialization affects patent novelty, with positive effects in low-overhang sectors and negative effects in high-overhang sectors.

Key Concepts

• Asset overhang: The risk that new technologies negatively affect the value of a bank's legacy loan portfolio.
• Bank specialization: The concentration of a bank's lending in specific sectors.
• Financial frictions: Factors that restrict the flow of credit and influence firms' innovation activities.
• Innovation types: Incremental and radical innovation, distinguished by the originality and generality of patents.

Theoretical Predictions

• Positive effect: Specialized banks can develop sector-specific expertise, improving their screening and monitoring capabilities, which supports corporate innovation.
• Negative effect: New technologies may have spillover effects on existing technologies, leading to negative impacts on the value of a bank's legacy portfolio. Specialized banks, being more exposed to these risks, may impede innovation in high-overhang sectors.

Methodology

• Two datasets are used:
  • U.S. syndicated loan data with patent data.
  • Belgian credit register data combined with Community Innovation Survey (CIS) data.
• Bank specialization is measured using sectoral credit ratios and SIC codes (2-digit and 3-digit).
• Asset overhang is measured using:
  • Kim and Kung (2017): A measure of asset redeployability.
  • Bloom et al. (2013): A measure of product market rivalry.
• Robustness checks include:
  • Using bank mergers to introduce exogenous variation in specialization.
  • Including firm and bank-by-time fixed effects to control for unobserved heterogeneity.
  • Controlling for zombie lending and informational complexity.

Mechanism Analysis

• The paper examines the financial contracting role of banks, focusing on:
  • Loan terms: Contractual rate, maturity, and covenants.
• In low-overhang sectors, specialized banks offer more favorable loan conditions, such as larger loan amounts, longer maturities, and less restrictive covenants, which support innovation.
• In high-overhang sectors, specialized banks charge higher loan rates, offer shorter maturities, and impose more restrictive covenants, which constrain firms' innovation activities.

Contributions to Literature

• The paper contributes to the finance and innovation literature by showing that bank specialization can both support and hinder innovation, depending on sector-specific characteristics.
• It adds to the financial and product market interaction literature, highlighting how product market features like rivalry and asset redeployability influence bank incentives to fund innovation.
• It also contributes to the bank specialization literature, extending previous findings to show that the effect on innovation is not uniform across sectors and is mediated by asset overhang.

Conclusion

• The paper concludes that bank specialization has dual effects on corporate innovation, depending on sector-specific asset overhang.
• These effects are empirically validated through multiple robustness checks and alternative measures.
• The findings underscore the importance of financial frictions in shaping the link between banking and innovation.

Key Information

• Authors: Hans Degryse, Olivier De Jonghe, Leonardo Gambacorta, Cedric Huylebroek.
• Department: Monetary and Economic Department, BIS.
• Date: October 2024.
• Keywords: Bank specialization, Bank lending, Corporate innovation, Asset overhang, Financial frictions.
• JEL Classification: G20, O30, L20.