Template-Type: ReDIF-Article 1.0 
Author-Name: Huwei Wen
Author-Name: Qiming Zhong
Author-Name: Quanen Guo
Author-Email:  wenhuwei@ncu.edu.cn
Author-Workplace-Name:  Nanchang University, China
Title: Does Bank Lending Intervention Hamper Firm Innovation? Evidence From the Chinese-style Capacity-Reduction Initiative
Abstract:  Using the difference-in-differences method, this study investigates the impact of bank lending intervention on firm innovation. We find that bank lending intervention significantly hampers R&D investment of firms in overcapacity industries. Moreover, policy intervention significantly reduces bank lending but increases the firms’ trade credit as well as the financing constraints of firms in overcapacity industries. Furthermore, bank lending intervention reduces the efficiency of credit allocation, an outcome which is attributed to its preference for politically connected firms rather than higher-efficiency ones.
Classification-JEL:  G21,O3
Keywords:  bank lending intervention,r&d investment,credit allocation,overcapacity
Journal:  Asian Economics Letters
Pages: 1-6
Volume: 1
Issue: 1
Year:  2021
DOI:  2021/06/27
File-URL:  https://a-e-l.scholasticahq.com/api/v1/articles/17082-does-bank-lending-intervention-hamper-firm-innovation-evidence-from-the-chinese-style-capacity-reduction-initiative.pdf
File-Format:  Application/pdf
Handle:  RePEc:ayb:jrnael:5