Financing Innovative Activity and the Endogeneity of Patenting

Published Online:https://doi.org/10.1287/mnsc.2022.00744

References

  • Aghion P, Bolton P (1992) An incomplete contracts approach to financial contracting. Rev. Econom. Stud. 59(3):473–494.CrossrefGoogle Scholar
  • Akcigit U, Kerr WR (2018) Growth through heterogeneous innovations. J. Political Econom. 126(4):1374–1443.CrossrefGoogle Scholar
  • Almeida H, Campello M (2007) Financial constraints, asset tangibility, and corporate investment. Rev. Financial Stud. 20(5):1429–1460.CrossrefGoogle Scholar
  • Amore MD, Schneider C, Žaldokas A (2013) Credit supply and corporate innovation. J. Financial Econom. 109(3):835–855.CrossrefGoogle Scholar
  • Bena J, Simintzi E (2022) Machines could not compete with Chinese labor: Evidence from US firms’ innovation. Working paper, University of British Columbia, Sauder School of Business, Vancouver.Google Scholar
  • Benmelech E (2009) Asset salability and debt maturity: Evidence from nineteenth-century American railroads. Rev. Financial Stud. 22(4):1545–1584.CrossrefGoogle Scholar
  • Benmelech E, Bergman NK (2008) Liquidation values and the credibility of financial contract renegotiation: Evidence from US airlines. Quart. J. Econom. 123(4):1635–1677.CrossrefGoogle Scholar
  • Benmelech E, Bergman NK (2009) Collateral pricing. J. Financial Econom. 91(3):339–360.CrossrefGoogle Scholar
  • Benmelech E, Garmaise MJ, Moskowitz TJ (2005) Do liquidation values affect financial contracts? Evidence from commercial loan contracts and zoning regulation. Quart. J. Econom. 120(3):1121–1154.Google Scholar
  • Berglöf E (1994) A control theory of venture capital finance. J. Law Econom. Organ. 10(2):247–267.Google Scholar
  • Besanko D, Thakor A (1987) Collateral and rationing: sorting equilibria in monopolistic and competitive credit markets. Internat. Econom. Rev. 28(3):671–689.CrossrefGoogle Scholar
  • Bolton P, Scharfstein DS (1990) A theory of predation based on agency problems in financial contracting. Amer. Econom. Rev. 80(1):93–106.Google Scholar
  • Bolton P, Scharfstein DS (1996) Optimal debt structure and the number of creditors. J. Polit. Econ. 104(1):1–25.CrossrefGoogle Scholar
  • Campello M, Giambona E (2013) Real assets and capital structure. J. Financial Quant. Anal. 48(5):1333–1370.CrossrefGoogle Scholar
  • Carpenter RE, Petersen BC (2002) Is the growth of small firms constrained by internal finance? Rev. Econom. Statist. 84(2):298–309.CrossrefGoogle Scholar
  • Chava S, Nanda V, Chong Xiao S (2017) Lending to innovative firms. Rev. Corp. Finance Stud. 6(2):234–289.CrossrefGoogle Scholar
  • Chava S, Oettl A, Subramanian A, Subramanian KV (2013) Banking deregulation and innovation. J. Financial Econom. 109(3):759–774.CrossrefGoogle Scholar
  • Cornaggia J, Mao Y, Tian X, Wolfe B (2015) Does banking competition affect innovation? J. Financial Econom. 115(1):189–209.CrossrefGoogle Scholar
  • Dell’Ariccia G, Kadyrzhanova D, Minoiu C, Ratnovski L (2021) Bank lending in the knowledge economy. Rev. Financial Stud. 34(10):5036–5076.CrossrefGoogle Scholar
  • Diamond DW, Hu Y, Rajan RG (2020) Pledgeability, industry liquidity, and financing cycles. J. Finance 75(1):419–461.CrossrefGoogle Scholar
  • Diamond DW, Hu Y, Rajan RG (2021) Liquidity, pledgeability, and the nature of lending. J. Financial Econom. 143(3):1275–1294.Google Scholar
  • Donaldson J, Piacentino G, Thakor A (2018) Warehouse banking. J. Financial Econom. 129(2):250–267.CrossrefGoogle Scholar
  • Ewens M, Gorbenko A, Korteweg A (2022) Venture capital contracts. J. Financial Econom. 143(1):131–158.CrossrefGoogle Scholar
  • Friedman DD, Landes WM, Posner RA (1991) Some economics of trade secret law. J. Econom. Perspect. 5(1):61–72.CrossrefGoogle Scholar
  • Gallini NT (2002) The economics of patents: Lessons from recent US patent reform. J. Econom. Perspect. 16(2):131–154.CrossrefGoogle Scholar
  • Garleanu N, Zwiebel J (2009) Design and renegotiation of debt covenants. Rev. Financial Stud. 22(2):749–781.CrossrefGoogle Scholar
  • Gilje EP, Loutskina E, Murphy D (2020) Drilling and debt. J. Finance 75(3):1287–1325.CrossrefGoogle Scholar
  • Glaeser S, Michels J, Verrecchia RE (2020) Discretionary disclosure and manager horizon: Evidence from patenting. Rev. Accounting Stud. 25(2):597–635.CrossrefGoogle Scholar
  • Gonzalez-Uribe J, Mann W (2017) New evidence on venture loans. Working paper, London School of Economics, London.Google Scholar
  • Grossman SJ, Hart OD (1986) The costs and benefits of ownership: A theory of vertical and lateral integration. J. Political Econom. 94(4):691–719.CrossrefGoogle Scholar
  • Hackbarth D, Haselmann R, Schoenherr D (2015) Financial distress, stock returns, and the 1978 Bankruptcy Reform Act. Rev. Financial Stud. 28(6):1810–1847.CrossrefGoogle Scholar
  • Hackbarth D, Mathews R, Robinson D (2014) Capital structure, product market dynamics, and the boundaries of the firm. Management Sci. 60(12):2971–2993.LinkGoogle Scholar
  • Haemmerli A (1996) Insecurity interests: where intellectual property and commercial law collide. Columbia Law Rev. 96:1645.CrossrefGoogle Scholar
  • Hall BH, Lerner J (2010) The financing of R&D and innovation. Hall BH, Rosenberg N, eds. Handbook of the Economics of Innovation, vol. 1 (Elsevier, North-Holland, Amsterdam), 609–639.CrossrefGoogle Scholar
  • Hall B, Helmers C, Rogers M, Sena V (2014) The choice between formal and informal intellectual property: A review. J. Econom. Lit. 52(2):375–423.CrossrefGoogle Scholar
  • Hart O, Moore J (1990) Property rights and the nature of the firm. J. Political Econom. 98(6):1119–1158.CrossrefGoogle Scholar
  • Hart O, Moore J (1994) A theory of debt based on the inalienability of human capital. Quart. J. Econom. 109(4):841–879.CrossrefGoogle Scholar
  • Hart O, Moore J (1998) Default and renegotiation: A dynamic model of debt. Quart. J. Econom. 113(1):1–41.CrossrefGoogle Scholar
  • Hellmann T (2006) IPOs, acquisitions, and the use of convertible securities in venture capital. J. Financial Econom. 81(3):649–679.CrossrefGoogle Scholar
  • Hochberg YV, Serrano CJ, Ziedonis RH (2015) Intangible but bankable. Science 348(6240):1202.Google Scholar
  • Hochberg YV, Serrano CJ, Ziedonis RH (2018) Patent collateral, investor commitment, and the market for venture lending. J. Financial Econom. 130(1):74–94.CrossrefGoogle Scholar
  • Holmstrom B, Tirole J (1997) Financial intermediation, loanable funds, and the real sector. Quart. J. Econom. 112(3):663–691.CrossrefGoogle Scholar
  • Huang C, Oehmke M, Zhong H (2019) A theory of multiperiod debt structure. Rev. Financial Stud. 32(11):4447–4500.CrossrefGoogle Scholar
  • Ibrahim D (2010) Debt as venture capital. Univ. Ill. Law Rev. 2010:1169.Google Scholar
  • Kaplan SN, Strömberg P (2003) The structure and governance of venture-capital organizations. Rev. Econom. Stud. 70(2):281–315.CrossrefGoogle Scholar
  • Kerr WR, Nanda R (2015) Financing innovation. Annual Rev. Financial Econom. 7:445–462.CrossrefGoogle Scholar
  • Kim H, Kung H (2017) The asset redeployability channel: How uncertainty affects corporate investment. Rev. Financial Stud. 30(1):245–280.CrossrefGoogle Scholar
  • Kortum L, Lerner J (2000) Assessing the contribution of venture capital to innovation. RAND J. Econom. 31(4):674–692.CrossrefGoogle Scholar
  • Lerner J (2002) 150 years of patent protection. Amer. Econom. Rev. 92(2):221–225.CrossrefGoogle Scholar
  • Lerner J, Nanda R (2020) Venture capital’s role in financing innovation: What we know and how much we still need to learn. J. Econom. Perspect. 34(3):237–261.CrossrefGoogle Scholar
  • Li F, Lundholm R, Minnis M (2013) A measure of competition based on 10-k filings. J. Accounting Res. 51(2):399–436.CrossrefGoogle Scholar
  • Ma S, Wang W (2019) Selling innovation in bankruptcy. Working paper, Yale University, New Haven, CT.Google Scholar
  • Mann RJ (1997) The role of secured credit in small-business lending. Geol. J. 86:1.Google Scholar
  • Mann W (2018) Creditor rights and innovation: Evidence from patent collateral. J. Financial Econom. 130(1):25–47.CrossrefGoogle Scholar
  • Marquez R, Yavuz MD (2013) Specialization, productivity, and financing constraints. Rev. Financial Stud. 26(11):2961–2984.CrossrefGoogle Scholar
  • Myers SC (1977) Determinants of corporate borrowing. J. Financial Econom. 5(2):147–175.CrossrefGoogle Scholar
  • Robb AM, Robinson DT (2014) The capital structure decisions of new firms. Rev. Financial Stud. 27(1):153–179.CrossrefGoogle Scholar
  • Rosen RJ (1991) Research and development with asymmetric firm sizes. RAND J. Econom. 22(3):411–429.CrossrefGoogle Scholar
  • Sahlman W (1990) The structure and governance of venture-capital organizations. J. Financial Econom. 27:473–521.CrossrefGoogle Scholar
  • Saidi F, Zaldokas A (2021) How does firms’ innovation disclosure affect their banking relationships? Management Sci. 67(2):742–768.LinkGoogle Scholar
  • Schmidt KM (2003) Convertible securities and venture capital finance. J. Finance 58(3):1139–1166.CrossrefGoogle Scholar
  • Stiglitz JE, Weiss A (1981) Credit rationing in markets with imperfect information. Amer. Econom. Rev. 71(3):393–410.Google Scholar
  • Williamson OE (1988) Corporate finance and corporate governance. J. Finance 43(3):567–591.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.