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Intellectual property collateralization and credit access: Evidence from patent pledging in China

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  • Wang, Bi

Abstract

This study investigates the impact of pledging patents as collateral on firms’ access to bank credit in China, drawing on data from listed firms spanning 2013 to 2023. Despite recent legal reforms facilitating the use of intellectual property (IP) in secured lending, empirical evidence on their effectiveness remains limited. Our analysis indicates that IP collateralization significantly enhances credit access, particularly by improving loan terms relative to firms’ assets and liability structures. The effect is more pronounced for private firms, which often lack traditional forms of collateral and face more stringent financing constraints. These findings highlight the role of legal frameworks in converting intangible assets into viable financing instruments, thereby supporting firm growth and innovation.

Suggested Citation

  • Wang, Bi, 2026. "Intellectual property collateralization and credit access: Evidence from patent pledging in China," Finance Research Letters, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:finlet:v:89:y:2026:i:c:s1544612325026091
    DOI: 10.1016/j.frl.2025.109360
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