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Credit Information Sharing and Firm Innovation: An Empirical Evidence

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  • Nurali Khan

    (Westminster International University in Tashkent)

Abstract

This paper investigates the effect of credit information sharing (CIS) on borrower’s innovation activities. On the foundation of unique dataset from developed and developing countries, we find that public credit registries (PCRs) have significant positive relationship with firms’ innovation. These findings contract the facilitative role of CIS in lowering firm’s cost of capital and boost efficiency. Our findings are robust to different specifications and alternative measures. After the establishment of PCRs, firms may benefit more if these firms have more power in enforcing the contracts and have dispersed banking environment. These findings are aligned with the perspective that improvements in creditors’ information sets lead to innovative portfolios and better financing opportunities.

Suggested Citation

  • Nurali Khan, 2022. "Credit Information Sharing and Firm Innovation: An Empirical Evidence," International Journal of Business and Management (IJBM), International Emerging Scholars Society (IESS), New Zealand, vol. 1(1), pages 87-96, July.
    • Handle: RePEc:cwd:ijbmnz:v:1:y:2022:i:1:p:87-96
    DOI: 10.56879/ijbm.v1i1.8
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    References listed on IDEAS

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