Innovation for Innovators: The Financing of Intangibles
AEA Papers and Proceedings
vol. 113,
May 2023
(pp. 268-73)
Abstract
This paper examines the characteristics of firms that adopt new financial products and their association with measures of performance. We build a novel firm-level panel dataset and document a positive association between intangible capital and the adoption of new products. We also find that access to external financing through new types of securities is associated with size growth and further investments into intangibles. These findings have important implications for understanding the role that financial innovation can play in meeting the financing needs of firms that rely heavily on intangible capital.Citation
Babus, Ana, Matias Marzani, and Sara Moreira. 2023. "Innovation for Innovators: The Financing of Intangibles." AEA Papers and Proceedings, 113: 268-73. DOI: 10.1257/pandp.20231023Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- G12 Asset Pricing; Trading Volume; Bond Interest Rates
- G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
- G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L25 Firm Performance: Size, Diversification, and Scope
- O34 Intellectual Property and Intellectual Capital