A beacon in the night: government certification of SMEs towards banks

Small Business Economics

Volumn 50, Issue 2, 2018, Pages 397-413

  Martí, José ^a   Quas, Anita ^b  

^a UNIVERSIDAD COMPLUTENSE DE MADRID   (Spain)

^b EMLYON BUSINESS SCHOOL   (France)

Author keywords

Certification hypothesis; Government intervention; Long term financing; Participative loans; Subsidized loans

Indexed keywords

EID: 85011304699     PISSN: 0921898X     EISSN: 15730913     Source Type: Journal    
DOI: 10.1007/s11187-016-9828-4     Document Type: Article

References (54)

1. Alperovych, Y., Hübner, G., & Lobet, F. (2015). How does governmental versus private venture capital backing affect a Firm’s efficiency? Evidence from Belgium. Journal of Business Venturing, 30(4), 508–525. doi:10.1016/j.jbusvent.2014.11.001.
2. Alperovych, Y., Groh, A. & Quas, A. (2016). When can government venture capital funds bridge the equity gap? http://papers.ssrn.com/abstract=2718061. Accessed 12 Dec 2016.
3. Bernanke, B. S., Gertler, M., & Gilchrist, S. (1996). The financial accelerator and the flight to quality. Review of Economics and Statistics, 78(1), 1–15. doi:10.3386/w4789.
4. Bertoni, F., & Tykvová, T. (2015). Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies. Research Policy, 44(4), 925–935. doi:10.1016/j.respol.2015.02.002.
5. Bester, H. (1985). Screening vs rationing in credit markets with imperfect information. American Economic Review, 75(4), 850–855. http://www.jstor.org/stable/1821362.
6. Binks, M. R., & Ennew, C. T. (1996). Growing firms and the credit constraint. Small Business Economics, 8(1), 17–25. doi:10.1007/BF00391972.
7. Binks, M. R., Ennew, C. T., & Reed, G. V. (1992). Information asymmetries and the provision of finance to small firms. International Small Business Journal, 11(1), 35–46. doi:10.1177/026624269201100103.
8. Brown, J. D., & Earle, J. S. (2016). Finance and growth at the firm level: evidence from SBA loans. Journal of Finance, (Forthcoming), 1–55. doi:10.2139/ssrn.2641184.
9. Busom, I., Corchuelo, B., & Martínez-Ros, E. (2014). Tax incentives… or subsidies for Business R&D? Small Business Economics, 4(3), 571–596. doi:10.1007/s11187-014-9569-1.
10. Carpenter, R. E., & Petersen, B. C. (2002a). Is the growth of small firms constrained by internal finance? Review of Economics and Statistics, 84(2), 298–309. doi:10.1162/003465302317411541.
11. Carpenter, R. E., & Petersen, B. C. (2002b). Capital market imperfections, high-tech investment, and new equity financing. Economic Journal, 112(477), F54–F72. doi:10.1111/1468-0297.00683.
12. Chemmanur, T. J., Krishnan, K., & Nandy, D. K. (2011). How does venture capital financing improve efficiency in private firms? A look beneath the surface. Review of Financial Studies, 24(617), 4037–4090. doi:10.1093/rfs/hhr096.
13. Colombo, M. G., Croce, A., & Guerini, M. (2013). The effect of public subsidies on firms’ investment–cash flow sensitivity: transient or persistent? Research Policy, 42(9), 1605–1623. doi:10.1016/j.respol.2013.07.003.
14. Colombo, M. G., Cumming, D. J., & Vismara, S. (2016). Governmental venture capital for innovative young firms. Journal of Technology Transfer, 41(1), 10–24. doi:10.1007/s10961-014-9380-9.
15. Croce, A., Martí, J., & Murtinu, S. (2013). The impact of venture capital on the productivity growth of European entrepreneurial firms: “screening” or “value added” effect? Journal of Business Venturing, 28(4), 489–510. doi:10.1016/j.jbusvent.2012.06.001.
16. Czarnitzki, D., & Delanote, J. (2015). R&D policies for young SMEs: input and output effects. Small Business Economics, 45(3), 465–485. doi:10.1007/s11187-015-9661-1.
17. Decramer, S., & Vanormelingen, S. (2016). The effectiveness of investment subsidies: evidence from a regression discontinuity design. Small Business Economics. doi:10.1007/s11187-016-9749-2.
18. Diamond, D. W. (1991). Monitoring and reputation: the choice between Bank loans and directly placed debt. Journal of Political Economy, 99(4), 689–721. doi:10.1086/261775.
19. Eurostat. (2015). Eurostat indicators on high-tech industry and knowledge—intensive services. Annex 3. http://epp.eurostat.ec.europa.eu/cache/ITY_SDDS/Annexes/htec_esms_an3.pdf. Accessed 16 January 2016.
20. Feldman, M. P., & Kelley, M. R. (2003). Leveraging research and development: assessing the impact of the US Advanced Technology Program. Small Business Economics, 20(2), 153–165. doi:10.1023/A:1022264031993.
21. Feldman, M. P., & Kelley, M. R. (2006). The ex-ante assessment of knowledge spillovers: Government R&D Policy, economic incentives and private firm behavior. Research Policy, 35(10), 1509–1521. doi:10.1016/j.respol.2006.09.019.
22. Grilli, L., & Murtinu, S. (2014). Government, venture capital and the growth of European high-tech entrepreneurial firms. Research Policy, 43(9), 1523–1543. doi:10.1016/j.respol.2014.04.002.
23. Grilli, L., & Murtinu, S. (2015). New technology-based firms in Europe: market penetration, public venture capital, and timing of investment. Industrial and Corporate Change, 24(5), 1109–1148. doi:10.1093/icc/dtu025.
24. Guerini, M., & Quas, A. (2015). Governmental venture Capital in Europe: screening and certification. Journal of Business Venturing, 31(2), 175–195. doi:10.1016/j.jbusvent.2015.10.001.
25. Hall, B. H. (2002). The financing of research and development. Oxford Review of Economic Policy, 18(1), 35–51. doi:10.1093/oxrep/18.1.35.
26. Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica, 47(1), 153–161. doi:10.2307/1912352.
27. Huergo, E., & Moreno, L. (2014). National or international public funding? Subsidies or loans? Evaluating the innovation impact of R&D support programmes. MPRA paper NO. 54218, 1–35.
28. Huergo, E., Trenado, M., & Ubierna, A. (2013). The impact of low-interest credits on business R&D expenditures: Spanish firms and CDTI loans for R&D projects. MPRA paper No. 44221, 1–57.
29. Infelise, F. (2014). Supporting Access to Finance by SMEs: Mapping the Initiatives in Five EU countries. Flensburg (GER). https://www.ceps.eu/publications/supporting-access-finance-smes-mapping-initiatives-five-eu-countries. Accessed 3 June 2015.
30. Karhunen, H., & Huovari, J. (2015). R&D subsidies and productivity in SMEs. Small Business Economics, 45(4), 805–823. doi:10.1007/s11187-015-9658-9.
31. Kleer, R. (2010). Government R&D Subsidies as a signal for private investors. Research Policy, 39(10), 1361–1374. doi:10.1016/j.respol.2010.08.001.
32. Kuo, C.-J., Chen, C.-M., & Sung, C.-H. (2011). Evaluating guarantee fees for loans to small and medium-sized enterprises. Small Business Economics, 37(2), 205–218. doi:10.1007/s11187-009-9236-0.
33. Lee, P. M., & Wahal, S. (2004). Grandstanding, certification and the underpricing of venture capital backed IPOs. Journal of Financial Economics, 73(2), 375–407. doi:10.1016/j.jfineco.2003.09.003.
34. Leleux, B., & Surlemont, B. (2003). Public versus private venture capital: seeding or crowding out? A pan-European analysis. Journal of Business Venturing, 18(1), 81–104. doi:10.1016/S0883-9026(01)00078-7.
35. Lemmon, M. L., Roberts, M. R., & Zender, J. F. (2008). Back to the beginning: persistence and the cross-section of corporate capital structure. Journal of Finance, 63(4), 1575–1608. doi:10.1111/j.1540-6261.2008.01369.x.
36. Lerner, J. (1999). The government as venture capitalist: the long-run impact of the SBIR program. Journal of Business, 72(3), 285–318. doi:10.3905/jpe.2000.319960.
37. Lerner, J. (2002). When bureaucrats meet entrepreneurs: the design of effective “public venture capital” programmes. Economic Journal, 112(477), F73–F84. doi:10.1111/1468-0297.00684.
38. Magri, S. (2009). The financing of small innovative firms: the Italian case. Economics of Innovation and New Technology, 18(2), 181–204. doi:10.1080/10438590701738016.
39. Meuleman, M., & De Maeseneire, W. (2012). Do R&D subsidies affect SMEs’ access to external financing? Research Policy, 41(3), 580–591. doi:10.1016/j.respol.2012.01.001.
40. Michaelas, N., Chittenden, F., & Poutziouris, P. (1999). Financial policy and capital structure choice in U.K. SMEs: empirical evidence from company panel data. Small Business Economics, 12(2), 113–130. doi:10.1023/A:1008010724051.
41. Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. doi:10.1016/0304-405X(84)90023-0.
42. North, D., Smallbone, D., & Vickers, I. (2001). Public sector support for innovating SMEs. Small Business Economics, 16(4), 303–317. doi:10.1023/A:1011164801073.
43. OECD. (2015). New approaches to SME and entrepreneurial financing: broadening the range of instruments. http://www.oecd.org/cfe/smes/New-Approaches-SME-full-report.pdf. Accessed 13 Jan 2016.
44. Pollock, T. G., Chen, G., Jackson, E. M., & Hambrick, D. C. (2010). How much prestige is enough? Assessing the value of multiple types of high-status affiliates for young firms. Journal of Business Venturing, 25(1), 6–23. doi:10.1016/j.jbusvent.2009.01.003.
45. Puri, M., & Zarutskie, R. (2012). On the life cycle dynamics of venture-capital- and non-venture-capital-financed firms. Journal of Finance, 67(6), 2247–2293. doi:10.1111/j.1540-6261.2012.01786.x.
46. Sogorb-Mira, F. (2005). How SME uniqueness affects capital structure: evidence from a 1994-1998 Spanish data panel. Small Business Economics, 25, 447–457. doi:10.1007/s11187-004-6486-8.
47. Sørensen, J. B., & Stuart, T. E. (2000). Aging, obsolescence, and organizational innovation. Administrative Science Quarterly, 45(1), 81–112. doi:10.2307/2666980.
48. Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71, 393–409. http://www.jstor.org/stable/1802787.
49. Teece, D. J. (1986). Profiting from technological innovation: implications for integration, collaboration, licensing and public policy. Research Policy, 15(6), 285–305. doi:10.1016/0048-7333(86)90027-2.
50. Tirole, J. (2006). The theory of corporate finance. Princeton (NJ): Princeton University Press.
51. Titman, S., & Wessels, R. (1988). The determinants of capital structure choice. Journal of Finance, 43(1), 1–19. doi:10.1111/j.1540-6261.1988.tb02585.x.
52. Ueda, M. (2004). Banks versus venture capital: project evaluation, screening, and expropriation. Journal of Finance, 59(2), 601–621. doi:10.1111/j.1540-6261.2004.00643.x.
53. Vella, F., & Verbeek, M. (1999). Estimating and interpreting models with endogenous treatment effects. Journal of Business & Economic Statistics, 17(4), 473–478. doi:10.1080/07350015.1999.1052483.
54. Zúñiga Vicente, J., Alonso-Borrego, C., Forcadell, F. J., & Galàn, J. I. (2014). Assessing the effect of public subsidies on firm R&D investment: a survey. Journal of Economic Surveys, 28(1), 36–67. doi:10.1111/j.1467-6419.2012.00738.x.