EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe

Using EIBIS data, this paper investigates the effects of different loan conditions on firms’ propensity to invest in intangible assets. When firms face restriction in how much they can borrow, this has a strong effect on how much they invest in intangible assets. Using European firm-level data from...

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Պահպանված է:
Մատենագիտական մանրամասներ
Հիմնական հեղինակներ: Kolevy, Atanas, Segol, Matthieu, Maurin, Laurent
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Լեզու:անգլերեն
Հրապարակվել է: European Investment Bank 2021
Խորագրեր:
Առցանց հասանելիություն:OCN: 1263775364
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author Kolevy, Atanas
Segol, Matthieu
Maurin, Laurent
author_browse Kolevy, Atanas
Maurin, Laurent
Segol, Matthieu
author_facet Kolevy, Atanas
Segol, Matthieu
Maurin, Laurent
author_sort Kolevy, Atanas
collection Directory of Open Access Books
description Using EIBIS data, this paper investigates the effects of different loan conditions on firms’ propensity to invest in intangible assets. When firms face restriction in how much they can borrow, this has a strong effect on how much they invest in intangible assets. Using European firm-level data from the EIB Investment Survey, this paper shows that, by contrast, unfavourable interest rates, maturity and collateral requirements have no significant effects on the probability to invest in intangible assets, provided firms are satisfied with their loan size. These terms however, do have a negative impact on the probability to invest in multiple intangible assets, undermining the ability of firms to benefit from the complementarities of these assets. The paper documents the effect of loan conditions on investment intensity, as well. The effect of quantity rationing on the amount invested in intangible assets is found to be limited. Other loan conditions however, like cost, maturity and collateral requirements, have significant effect on investment intensity.
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language eng
publishDate 2021
publishDateRange 2021
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publisherStr European Investment Bank
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spelling doab-20.500.12854ir-713392025-07-30T17:07:06Z EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe Kolevy, Atanas Segol, Matthieu Maurin, Laurent European Investment Bank Business & Economics Finance thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry Using EIBIS data, this paper investigates the effects of different loan conditions on firms’ propensity to invest in intangible assets. When firms face restriction in how much they can borrow, this has a strong effect on how much they invest in intangible assets. Using European firm-level data from the EIB Investment Survey, this paper shows that, by contrast, unfavourable interest rates, maturity and collateral requirements have no significant effects on the probability to invest in intangible assets, provided firms are satisfied with their loan size. These terms however, do have a negative impact on the probability to invest in multiple intangible assets, undermining the ability of firms to benefit from the complementarities of these assets. The paper documents the effect of loan conditions on investment intensity, as well. The effect of quantity rationing on the amount invested in intangible assets is found to be limited. Other loan conditions however, like cost, maturity and collateral requirements, have significant effect on investment intensity. 2021-07-16T02:02:04Z 2021-07-16T02:02:04Z 2021-07-15T03:30:49Z 2021 book OCN: 1263775364 https://library.oapen.org/handle/20.500.12657/50073 9789286150364 https://directory.doabooks.org/handle/20.500.12854/71339 eng open access image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International https://library.oapen.org/bitstream/20.500.12657/50073/1/9789286150364.pdf https://library.oapen.org/bitstream/20.500.12657/50073/1/9789286150364.pdf https://library.oapen.org/bitstream/20.500.12657/50073/1/9789286150364.pdf https://library.oapen.org/bitstream/20.500.12657/50073/1/9789286150364.pdf https://library.oapen.org/bitstream/20.500.12657/50073/1/9789286150364.pdf European Investment Bank European Investment Bank https://doi.org/10.2867/974979 https://doi.org/10.2867/974979 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 9789286150364 Knowledge Unlatched (KU) KU Open Services European Investment Bank open access
spellingShingle Business & Economics
Finance
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
Kolevy, Atanas
Segol, Matthieu
Maurin, Laurent
EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe
title EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe
title_full EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe
title_fullStr EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe
title_full_unstemmed EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe
title_short EIB Working Paper 2021/05 - The impact of bank loan terms on intangible investment in Europe
title_sort eib working paper 2021 05 the impact of bank loan terms on intangible investment in europe
topic Business & Economics
Finance
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
topic_facet Business & Economics
Finance
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
url OCN: 1263775364
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