The Impact of Competition on Bank Orientation
Journal of Financial Intermediation,
How do banks react to increased competition? Recent banking theory significantly disagrees regarding the impact of competition on bank orientation—i.e., the choice of relationship-based versus transactional banking. We empirically investigate the impact of interbank competition on bank branch orientation. We employ a unique data set containing detailed information on bank–firm relationships. We find that bank branches facing stiff local competition engage considerably more in relationship-based lending. Our results illustrate that competition and relationships are not necessarily inimical.
Repercusiones de la integración y consolidación de los sectores bancarios europeos sobre la innovación y las actividades de los emprendedores
Papeles de Economía Española,
We investigate whether the agenda of deepening the integration of the European financial sector may hurt innovation and growth in Europe. In particular we highlight the problems financial integration may create for breakthrough innovation. Financial integration, by escalating competition and consolidation in the European banking sector, may jeopardize the funding of radical innovators. However weighing the current evidence we conclude these problems may at most be transitory.
Spillover effects and R&D co-operations - The influence of market structure
IWH Discussion Papers,
This paper examines empirically the role of market structure for the influence of spill-over effects on R&D-cooperations. The results of a microeconometric analysis, based on firm data on innovation, let in general presume that with intensified competition also the influence of spillovers on R&D-cooperation increases. However, competition seems to induce firms to search for effective firm-specific appropriation facilities first. Spillovers that are sufficiently high such that the internalisation effect from R&D-cooperation more than outweighs the competitive effect from research, only arise whenever firms are not able to protect their research results through any appropriation facility. Additionally, there is some evidence that spillover effects may even hinder firms from cooperating in R&D when there is intensive competition on the research stage.