Determinants of financing constraints

Santos, Anabela; Cincera, Michele

doi:10.1007/s11187-021-00449-w

Cited by 30 publications

(21 citation statements)

References 39 publications

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“…To address these potential dynamics, we study the insolvency risk of innovative SMEs around the pandemic, their most pressing problems and access to finance separately. To identify the innovative SMEs in our sample and following the literature, we refer to the first question of section five of the SAFE survey ( Moro et al, 2020 ; Santos and Cincera, 2022 ). To be specific, the question asks, “During the past 12 months have you introduced a new or significantly improved product or service to the market?” The response categories are either yes or no (or no response).…”

Section: Resultsmentioning

confidence: 99%

“…Notwithstanding, bank financing may be limited for innovative projects, especially for young firms, due to the higher default risk ( Czarnitzki and Hottenrott, 2011 ). Additionally, the nature of the innovation strategy might lead to financing constraints ( Santos and Cincera, 2022 ). Considering the central role of innovative SMEs for sustained growth, access to finance for innovative SMEs requires a closer look ( Peters et al, 2017 ).…”

Section: Literaturementioning

confidence: 99%

“…Building on this, we further investigate the impact of innovation on SMEs' access to finance. Following previous literature, we focus on the SMEs that introduced a new or significantly improved product as a proxy of innovation ( Santos and Cincera, 2022 ; Moro et al, 2020 ). Our results show that innovative SMEs have lower insolvency risk than their noninno- vative counterparts.…”

Section: Introductionmentioning

confidence: 99%

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Determinants and consequences of SME insolvency risk during the pandemic

Kaya¹

2022

Economic Modelling

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Section: Resultsmentioning

confidence: 99%

Section: Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Determinants and consequences of SME insolvency risk during the pandemic

Kaya¹

2022

Economic Modelling

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“…From this perspective, in assessing the determinants of financial constraints for small- and medium-sized enterprises operating in the European Union space during the period 2014–2018, Santos and Cincera (2021) found evidence that innovative firms were most likely to face financial constraints and that tax incentives had little influence in mitigating this specific problem. This is because they were based on actual expenditures.…”

Section: Structural Model and Research Hypothesesmentioning

confidence: 99%

R&D tax incentives and innovation: unveiling the mechanisms behind innovation capacity

Walter

Au‐Yong‐Oliveira

Veloso

et al. 2022

JAMR

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PurposeThere is a scarcity of empirical evidence in the literature on the chain of causality involving tax incentives for Research and Development (R&D) activities and their subsequent transformation into innovation. This study aims to assess the influence of R&D tax incentives on the organizational attributes of Portuguese firms to identify how they are converted into innovation.Design/methodology/approachA structural research model consisting of 339 companies that benefited from the Fiscal Incentive System supporting R&D in Enterprises, during the period from 2013 to 2016, was developed. This was done to assess the role of R&D tax incentives on the organizational attributes that form the innovation capacity. The model was validated using the multivariate statistical technique of structural equation modeling with partial least squares estimation (partial least squares structural equation modeling – PLS-SEM).FindingsThe results found suggest that although it is not possible to unequivocally identify the mechanisms used to convert tax incentives into innovation, it is possible to conclude that they play an important spillover effect for the construction and strengthening of organizational attributes. These form the basis of innovation capacity, to the extent that they positively influence the firms’ total assets, equity, liabilities, number of employees and sales. Hence, contributions are brought to both the literature on tax incentives and the general literature on innovation.Originality/valueFor policymakers, the evidence points to the fact that in addition to the incentives provided, novel mechanisms need to be established to help firms develop their absorptive capacity. The objective is to effectively convert the incentives received into innovation through the organizational attributes analyzed. From the firms’ point of view, the results found suggest that tax incentives act as a catalyst for making R&D investments. Additionally, there is an influence on employability, which effectively enhances the chances of innovation in the long run. Tax incentives received by Portuguese firms also have the effect of promoting economic dynamism – by enhancing the following: investments in infrastructure, the hiring of employees and the increasing of sales, generating positive externalities for both firms and society.

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“…The relevant literature on innovation inclusion (Mohnen et al, 2008;Mancusi & Vezzulli, 2010;Santos & Cincera, 2022) associates this barrier with the possible limited access of SMEs to external finance. Unavoidably, innovative firms and especially innovative SMEs due to a lack of alternatives, rely heavily on bank credit once their internal funds are exhausted (Canepa & Stoneman, 2003;Freel, 2007;Paunov, 2012).…”

Section: Introductionmentioning

confidence: 99%

Innovative Activity and Access to Finance of SMEs: Views and Agenda

Vlassas¹,

Kallandranis²,

Anastasiou³

2023

TEL

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A rapidly growing body of research applies survey methods to examine the ability of SMEs to obtain external financing. These studies focus on firmspecific characteristics and demonstrate the impact of such ability on their own growth and overall economic growth, among other outcomes. However, the use of external financing is of crucial importance, especially whether SMEs can adopt innovation when they succeed in getting a loan. This paper reviews this literature that is not as extensive as the one focusing on typical investments with two purposes. First, we summarize recent work, providing a guide to its methodologies, datasets, and findings. Second, we consider applications of the literature in innovation, including insights for policymakers that seek to assess the potential economic effects of investments in innovation.

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Determinants of financing constraints

Cited by 30 publications

References 39 publications

Determinants and consequences of SME insolvency risk during the pandemic

Determinants and consequences of SME insolvency risk during the pandemic

R&D tax incentives and innovation: unveiling the mechanisms behind innovation capacity

Innovative Activity and Access to Finance of SMEs: Views and Agenda

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