nep-sbm New Economics Papers
on Small Business Management
Issue of 2022‒04‒04
eighteen papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Do various innovation linkages enhance innovation? International evidence By Goel, Rajeev K.
  2. Website premia for extensive margins of international firm activities Evidence for SMEs from 34 countries By Joachim Wagner
  3. The Firm Size-Leverage Relationship and Its Implications for Entry and Business Concentration By Satyajit Chatterjee; Burcu Eyigungor
  4. The determinants of AI innovation across European firms By Igna, Ioana; Venturini, Francesco
  5. Ownership, Governance, Management and Firm Performance: Evidence from Italian Firms By Audinga Baltrunaite; Sara Formai; Andrea Linarello; Sauro Mocetti
  6. Vers une meilleure compréhension de la transformation numérique optimisée par lâIA et de ses implications pour les PME manufacturières au Canada - Une recherche qualitative exploratoire By Amir Taherizadeh; Catherine Beaudry
  7. Structural change and firm dynamics in the south of Italy By Francesco Bripi; Raffaello Bronzini; Elena Gentili; Andrea Linarello; Elisa Scarinzi
  8. Estimating conditional treatment effects of EIB lending to SMEs in Europe By Barbera, Alessandro; Gereben, Aron; Wolski, Marcin
  9. Legal Weakness, Investment Risks, and Distressed Acquisitions: Evidence from Russian Regions By Adachi, Yuko; Iwasaki, Ichiro
  10. Resilient entrepreneurs? Revisiting the relationship between the Big Five and self-employment By Runst, Petrik; Thomä, Jörg
  11. Firm Productivity Growth and the Knowledge of New Workers By Michael Kirker; Lynda Sanderson
  12. Foreign graduates in Sweden. The role of high tech sectors, STEM disciplines and cultural distance. By Fassio, Claudio; Igna, Ioana
  13. Better pensions for the European Union’s self-employed By Rebecca Christie; Monika Grzegorczyk; Diane Mulcahy
  14. Innovation ouverte et écosystème dâinnovation : Implications pour le secteur public By Simon Bourdeau; Amandine Pascal; Mathieu Templier; Thibaut Coulon
  15. Place-based policies and agglomeration economies: Firm-level evidence from special economic zones in India By Görg, Holger; Mulyukova, Alina
  16. Closing the Italian digital gap: The role of skills, intangibles and policies By Flavio Calvino; Stefano DeSantis; Isabelle Desnoyers-James; Sara Formai; Ilaria Goretti; Silvia Lombardi; Francesco Manaresi; Giulio Perani
  17. Global Knowledge Embeddedness By Holger Graf; Martin Kalthaus
  18. The Effects of Credit Lines on Cash Holdings and Capital Investment: Evidence from Japan By Honda, Tomohito

  1. By: Goel, Rajeev K.
    Abstract: Whereas various drivers of the international innovative activity have been studied in the literature, our understanding of the contributions of different innovation linkages to innovation deserves more attention. Are the different innovation linkages equally complementary to research inputs in fostering innovation? This paper addresses the contributions of different innovation linkages to innovation, across two different measures of innovation. We find that a broader index of innovation linkages shows positive and significant spillovers on innovation, while joint ventures and university-industry collaborations fail to exert a significant influence. These spillovers are reinforced by the positive and expected impacts of R&D spending. In other results, greater venture capital investments boost innovation in most cases, while more FDI boosts one type of innovation output. These findings are uniquely shown to be sensitive across least- and most innovative nations when a quantile regression is employed. Implications for technology policy are discussed.
    Keywords: patents,innovation,innovation linkages,R&D,joint ventures,university-industry collaboration
    JEL: O31 O33 O38
    Date: 2022
  2. By: Joachim Wagner (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre)
    Abstract: This paper uses firm level data from the Flash Eurobarometer 421 survey conducted in June 2015 in 34 European countries to investigate the link between having a website and international firm activities in small and medium sized enterprises (SMEs). We find that firms which are present in the web do more often export, import, engage in research and development cooperation with international partners, work as subcontractors for firms from other countries, use firms in other countries as subcontractors, and perform foreign direct investments – both inside and outside the European Union. The estimated website premia are statistically highly significant after controlling for firm size, country, and sector of economic activity. Furthermore, the size of these premia can be considered to be large. Internationally active firms tend to have a website.
    Keywords: Website premia, international firm activities, Flash Eurobarometer 421
    JEL: D22 F14 F23 L25
    Date: 2022–03
  3. By: Satyajit Chatterjee; Burcu Eyigungor
    Abstract: Larger firms (by sales or employment) have higher leverage. This pattern is explained using a model in which firms produce multiple varieties, acquire new varieties from their inventors, and borrow against the future cash flow of the firm with the option to default. A variety can die with a constant probability, implying that firms with more varieties (bigger firms) have a lower variance of sales growth and, in equilibrium, higher leverage. In this setup, a drop in the risk-free rate increases the value of an acquisition more for bigger firms because of their higher leverage: They can (and do) borrow a larger fraction of their future cash flow. The drop causes existing firms to buy more of the new varieties arriving into the economy, resulting in a lower startup rate and greater concentration of sales.
    Keywords: Startup rates; concentration; leverage; firm dynamics
    JEL: E22 E43 E44 G32 G33 G34
    Date: 2022–03–17
  4. By: Igna, Ioana (CIRCLE, Lund University); Venturini, Francesco (University of Perugia)
    Abstract: Using patent data for a panel sample of European companies between 1995 and 2016 we explore whether the innovative success in Artificial Intelligence (AI) is related to earlier firms’ research in the area of Information and Communication Technology (ICT), and identify which company characteristics and external factors shape this performance. We show that AI innovation has been developed by the most prolific firms in the field of ICT, presents strong dynamic returns (learning effects), and benefits from complementaries with knowledge developed in network and communication technologies, high-speed computing and data analysis, and more recently in cognition and imaging. AI patent productivity increases with the scale of research but is lower in presence of narrow and mature technological competencies of the firm. AI innovating companies are found to benefit from spillovers associated with innovations developed in the field of ICT by the business sector; this effect, however, is confined to frontier firms. Our findings suggest that, with the take-off of the new technology, the technological lead of top AI innovators has increased mainly due to the accumulation of internal competencies and the expanding knowledge base. These trends help explain the concentration process of the world’s data market.
    Keywords: AI; ICT; patenting; European firms
    JEL: O31 O32 O34
    Date: 2022–03–02
  5. By: Audinga Baltrunaite (Bank of Italy); Sara Formai (Bank of Italy); Andrea Linarello (Bank of Italy); Sauro Mocetti (Bank of Italy)
    Abstract: We explore the role of ownership, governance and management characteristics as potential drivers of the performance gaps between firms located in the Centre and North and in the South of Italy. First, we document that southern firms are characterized by more frequent family ownership and a higher fraction of local and family directors on the board. Moreover, entrepreneurs and managers of southern firms have lower education levels and are less inclined to adopt structured managerial practices and advanced technology. Second, we examine to what extent these differences account for the performance gap between the two areas. We find that managers’ human capital explains one tenth of the difference in firm size, while family ownership accounts for one tenth of the differences in productivity. Although the analysis is purely descriptive, our findings suggest that ownership, governance and management play a significant role in explaining firm performance and account for a non-negligible fraction of the North-South divide.
    Keywords: ownership, family firms, corporate governance, managerial practices, human capital, firm size, productivity, technology
    JEL: G30 L20 M10
    Date: 2022–03
  6. By: Amir Taherizadeh; Catherine Beaudry
    Abstract: This report presents the main results of the qualitative and exploratory study aimed at explaining how artificial intelligence (AI), as general-purpose technology (GPT), impacts firm-level productivity and employment. Analyzing primary and secondary data sources (including 27 interviews, reports, and panel discussions), we first develop the maturity spectrum of AI adoption and classify small and medium-sized enterprises (SMEs) that integrate AI into their work processes into four archetypes: The Wishful, The Achievers, The Leaders, and The Visionaries. By characterizing each archetype, we highlight nuances of changes that need to take place for a firm to further progress to the next stage of AI adoption. Second, we identify and explain seven barriers that are associated with the pervasive integration of AI among SMEs in manufacturing industries. Third, in three distinct case studies, we explore three AI projects conducted by Quebec-based AI-focused firms to show how machine learning (ML) integration into products and work processes can act as a productivity enhancer and identify its impact on firm-level employment. Overall, our results suggest that successful AI integration requires a firm-level digital transformation which we illustrate as a continuum. In the early stages of adoption (including firms in The Wishful and The Achievers classes) where AI adoption is project-centric, firms’ employment tends to increase in parallel with productivity gains. The much-needed upskilling of the existing workforce also occurs at the same time. Further, as firms integrate AI on an enterprise-wide scale (The Leaders and The Visionaries) and increase the level of their innovation activities, firm-level job losses are experienced in parallel to productivity gains. Next, we introduce indirect indicators of AI pervasiveness as more realistic measures to evaluate the rate of AI adoption by SMEs in a fluid stage. Finally, we propose four recommendations that have implications for researchers, practitioners as well as policymakers. To quote this document Taherizadeh, A. and Beaudry C. (2021). Vers une meilleure compréhension de la transformation numérique optimisée par l’IA et de ses implications pour les PME manufacturières au Canada - Une recherche qualitative exploratoire (2022RP-04, CIRANO). Ce rapport présente les principaux résultats d’une étude qualitative exploratoire visant à examiner l’impact de l’intelligence artificielle (IA), en tant que technologie à usage général (TUG) sur la productivité et l’emploi à l’échelle de l’entreprise. À la suite de l’analyse de sources de données primaires et secondaires (comprenant 27 entretiens, rapports et discussions de groupe), nous établissons d’abord une échelle de maturité de l’adoption de l’IA et un classement des petites et moyennes entreprises (PME) qui intègrent l’IA dans leurs processus de travail en quatre archétypes : l’Aspirant, le Fonceur, le Leader et le Visionnaire. Nous définissons chaque archétype de façon à mettre en évidence les changements particuliers à opérer pour qu’une entreprise puisse passer à l’étape suivante de l’adoption de l’IA. Deuxièmement, nous définissons et examinons sept obstacles à l’adoption généralisée de l’IA par les PME manufacturières. Troisièmement, à l’aide de trois études de cas, nous explorons trois projets d’IA menés par des entreprises québécoises axées sur l’IA afin de montrer, d’une part, l’apport de l’intégration de l’apprentissage automatique (AA) aux produits et aux processus de travail sur le plan de la productivité des entreprises, et d’autre part son effet sur leurs effectifs. Dans l’ensemble, les résultats de notre étude suggèrent que la réussite de l’intégration de l’IA nécessite une transformation numérique au niveau de l’entreprise, que nous présentons comme un continuum. Dans les premières étapes, où l’adoption de l’IA se fait autour de projets (en particulier pour les entreprises des catégories Aspirant et Fonceur), les effectifs des entreprises ont tendance à augmenter parallèlement aux gains de productivité en même temps que le perfectionnement indispensable des compétences de la main-d’œuvre existante. En outre, lorsque l’IA est déployée à l’échelle de l’entreprise (chez les Leaders et les Visionnaires) et que cette dernière rehausse le niveau de ses activités d’innovation, on enregistre plutôt des pertes d’emploi parallèlement aux gains de productivité. Par la suite, nous introduisons des indicateurs indirects de l’omniprésence de l’IA, car nous estimons qu’il s’agit de mesures plus réalistes pour évaluer le taux d’adoption de l’IA par les PME en phase fluide. Enfin, nous proposons quatre recommandations qui ont des implications pour les chercheurs, les praticiens et les responsables politiques. Pour citer ce document Taherizadeh, A. et Beaudry C. (2021). Vers une meilleure compréhension de la transformation numérique optimisée par l’IA et de ses implications pour les PME manufacturières au Canada - Une recherche qualitative exploratoire (2022RP-04, CIRANO).
    Keywords: Artificial intelligence,Digital transformation,General Purpose Technology,Employment,Machine learning,Productivity,Manufacturing,Technological Innovation, Intelligence artificielle,Transformation numérique,Technologies à usage général,Emploi,Apprentissage automatique,Productivité,Secteur manufacturier,Innovation technologique
    JEL: C80 D20 L60 M50 O10
    Date: 2022–03–11
  7. By: Francesco Bripi (Bank of Italy); Raffaello Bronzini (Bank of Italy); Elena Gentili (Bank of Italy); Andrea Linarello (Bank of Italy); Elisa Scarinzi (Bank of Italy)
    Abstract: In this paper, we study the structural change in the Centre-North and the South of Italy, focusing on its implications for productivity dynamics and its microeconomic determinants. We document three main results. First, between 2001 and 2018 the deindustrialization process involved both parts of Italy, but in the South it started after the financial crisis and was more pronounced. In the southern regions, the employment shares in low knowledge-intensive services increased more than in the Centre-North, whereas those in the high knowledge-intensive services increased less. Second, structural changes slowed down productivity growth in the Centre-North, but had no role in the fall of productivity registered in the South. Finally, in the Centre-North employment growth has been driven by the net creation of jobs among incumbents and larger firms. In contrast, employment dynamics in the southern regions largely reflected the process of firms entering and exiting the market, in particular in less knowledge-intensive service sectors, and in young and smaller enterprises.
    Keywords: structural change, firm dynamics, North-South gap, productivity growth, shift-share analysis
    JEL: R00 R11 L16 O41 O47
    Date: 2022–03
  8. By: Barbera, Alessandro; Gereben, Aron; Wolski, Marcin
    Abstract: We estimate heterogeneous treatment effects of the EIB financial support on European firms between 2008 and 2015. The relevant control groups are created with propensity score matching and the effects are estimated in a difference-in-differences framework, controlling for firm-level and country-sector-year fixed effects. We find that the positive effects of EIBsupported lending on job creation and investments were larger for smaller and younger firms. Moreover, we find evidence that longer maturities and more advantageous loan pricing are associated with larger employment and investment effects, while no larger impact is observed for larger loan volumes. Overall, the results suggest that benefits of the EIB support are rather observed on an intensive, rather than on an extensive, margin.
    Keywords: climate action and environment,economics
    Date: 2022
  9. By: Adachi, Yuko; Iwasaki, Ichiro
    Abstract: This paper traces the survival status of 93,260 Russian business firms in the period of 2007–2019 and empirically examines the determinants of the acquisition of financially distressed companies (i.e., distressed acquisitions). We found that, of 93,260 firms, 50,743 failed in management, and among these distressed firms, 10,110 were rescued by acquisition during the observation period. Our empirical results indicate that, in Russian regions, the weakness of the legal system tends to increase the probability of distressed acquisitions, while other socioeconomic risks negatively affect it. These tendencies are common in most industries and regions. It is also revealed that, in the most developed area, monotown enterprises are more likely to be bailed out by acquisition after management failure than other firms, but it is not always true for the whole nation.
    Keywords: legal weakness, investment risk, financial distress, distressed acquisitions, Russia
    JEL: C35 D02 D22 E02 G34 K20 L22
    Date: 2022–03
  10. By: Runst, Petrik; Thomä, Jörg
    Abstract: Based on a trait-oriented approach, Big Five personality traits have been repeatedly shown to affect entrepreneurial action. In the last two decades, a new literature stream on the Big Five has emerged in the field of psychology that has partly moved away from a traitbased perspective towards a person-centered approach, suggesting that multiple stable combinations of traits form individual personalities. We examine the relationship between this prototyping approach and entrepreneurship. Moreover, we compare prototyping with entrepreneurial profiling, another person-oriented approach to the Big Five, which assumes that low levels of agreeableness and high levels of all other traits describe a particular entrepreneurship-prone personality. By using data from the German Socio-Economic Panel (SOEP), we show that at least three prototypes can be identified, one of which - the resilient type - can be hypothesized to significantly increase the likelihood of entrepreneurial action. Our regression results provide evidence of a positive impact of the resilient type on the likelihood of and transitioning into self-employment but not the likelihood of exit. We also show that the prototyping approach explains individual self-employment decisions over and above what can already be explained by the profiling approach. Thus, the entrepreneurial profile tends to ignore a relatively large number of individuals who exhibit certain combinations of traits predisposing them to become entrepreneurs. In the context of entrepreneurship, profiling should therefore only be seen as a first step on the way from the usual trait-based to a person-oriented view of the Big Five.
    Keywords: Entrepreneurship,Self-employment,Big Five,Personality,Prototypes,Profiles
    JEL: D91 L26 M13
    Date: 2022
  11. By: Michael Kirker; Lynda Sanderson (The Treasury)
    Abstract: Linked employer-employee data from New Zealand is used to study the relationship between a firm’s productivity growth and its exposure to outside knowledge through the hiring of new workers with previous work experience. The estimated relationship between productivity growth and hiring is compared to the predictions implied by two different channels: worker quality and knowledge spillover. Although it is not possible to identify a causal relationship, the productivity of a worker’s previous employer is correlated with subsequent productivity growth at the hiring firm. The patterns of this correlation are consistent with both the worker quality and knowledge spillover channels operating simultaneously. Furthermore, if knowledge spillover is occurring, the results suggest the type of knowledge spilling over relates to technological knowledge allowing firms to become more capital intensive, rather than knowledge that improves the efficiency of utilising existing inputs.
    Keywords: productivity; labour mobility; human capital; knowledge diffusion
    JEL: D24 J24 J62 O33
    Date: 2022–03
  12. By: Fassio, Claudio (CIRCLE, Lund University); Igna, Ioana (CIRCLE, Lund University)
    Abstract: This paper analyzes the career paths of foreign students in Sweden, after graduation. Matching individual data on foreign graduates in Sweden with information about their employers, we analyze the sectors in which they start their career after graduation in Sweden, during the period 2000-2014. We propose that foreign graduates are attracted by firms operating in sectors employing a higher level of knowledge codification and in expanding sectors with a higher growth of demand for skilled workers. Our findings indicate that foreign graduates are more likely than Swedish ones to work in high-tech sectors, both in manufacturing and services, and in expanding industries, such as the services with low knowledge intensity. Foreign students from more culturally distant locations are more likely to work in high-tech or in expanding sectors. Finally, STEM foreign graduates are the main driver of the propensity to work in high tech manufacturing sectors, but not in high tech services.
    Keywords: foreign graduates; STEM; cultural distance; high tech; occupations
    JEL: J20 O39
    Date: 2021–03–02
  13. By: Rebecca Christie; Monika Grzegorczyk; Diane Mulcahy
    Abstract: Self-employed workers are taking on a larger role in the European economy, particularly workers who operate as independent contractors rather than as small-business owners with their own workforce. Becoming self-employed offers flexibility and entrepreneurial potential, but can limit access to state-sponsored pension schemes. We assess the current state of pension policy across the European Union and take a more detailed look at five countries to see how independent workers are...
    Date: 2022–03
  14. By: Simon Bourdeau; Amandine Pascal; Mathieu Templier; Thibaut Coulon
    Abstract: Deploying open innovation initiatives is a risky and demanding venture for all types of organizations, but especially for public sector organizations (PSOs). This study identified 17 challenges, grouped in four categories, related to OI deployment: 1) Inter-organizational collaboration, 2) Innovation process, 3) Citizen engagement, and 4) Data and technology, as well as 18 good practices/organizational actions to increase the probability of success. Finally, two case studies, PULSAR and Cité de l'innovation et des savoirs Aix-Marseille (CISAM), were conducted to better understand how these practices can meet the challenges, while promoting value creation during the innovation cycle. To quote this document Bourdeau, S., Coulon, T., Pascal, A. and Templier, M. (2021). Innovation ouverte et écosystème d’innovation : Implications pour les organisations du secteur public (2022s-05). CIRANO. Le déploiement d’initiatives d’innovation ouverte représente, pour tous types d’organisations et plus particulièrement pour les organisations du secteur public (OSP), une aventure risquée et exigeante. La présente étude a identifié 17 défis, regroupés dans quatre catégories, liés au déploiement d’IO : 1) Collaboration inter-organisationnelle, 2) Processus d’innovation, 3) Implication des citoyens et 4) Données et technologies, ainsi que 18 bonnes pratiques/actions organisationnelles permettant d’augmenter les probabilités de succès. Finalement, deux études de cas, PULSAR et Cité de l’innovation et des savoirs Aix-Marseille (CISAM) , ont été réalisées, afin de mieux comprendre comment ces pratiques peuvent répondre aux défis, tout en en favorisant la création de valeur lors du cycle d'innovation. Pour citer ce document Bourdeau, S., Coulon, T., Pascal, A. et Templier, M. (2021). Innovation ouverte et écosystème d’innovation : Implications pour les organisations du secteur public (2022s-05). CIRANO.
    Keywords: Open Innovation (OI),public sector organizations,OI challenges,OI best practices,dynamic capabilities,case studies, Innovation ouverte (IO),organisations du secteur public,défis IO,bonnes pratiques IO,capacités dynamiques,études de cas
    Date: 2022–03–08
  15. By: Görg, Holger; Mulyukova, Alina
    Abstract: This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct and spillover effects of the program. We combine geocoded firm-level data and geocoded SEZs using a concentric ring approach, thus creating a novel dataset of firms with their assigned SEZ status. To overcome the selection bias we employ inverse probability weighting with time-varying covariates in a difference-in-differences framework. Our analysis yields that conditional on controlling for initial selection, the establishment of SEZs induced no further productivity gains for within SEZ firms, on average. This effect is predominantly driven by relatively less productive firms, whereas more productive firms experienced significant productivity gains. However, SEZs created negative externalities for firms in the vicinity which attenuate with distance. Neighbouring domestic firms, large firms, manufacturing firms and non-importer firms are the main losers of the program. Evidence points at the diversion of inputs from non-SEZ to SEZ-firms as a potential mechanism.
    Keywords: Special Economic Zones,India,TFP growth,firm performance,spillovers,time-varyingtreatment
    JEL: O18 O25 P25 R10 R58 R23 F21 F60
    Date: 2022
  16. By: Flavio Calvino (OECD); Stefano DeSantis (Italian National Institute of Statistics); Isabelle Desnoyers-James (OECD); Sara Formai (Bank of Italy); Ilaria Goretti (OECD); Silvia Lombardi (Italian National Institute of Statistics); Francesco Manaresi (OECD); Giulio Perani (Italian National Institute of Statistics)
    Abstract: The study identifies the main factors that affect the diffusion of digital technologies and their returns among Italian firms, highlighting the crucial role of public policies. It uses a unique data infrastructure that integrates information on digital technology adoption, firm performance, and workers’ and managers’ skills. The analysis shows that the low digitalisation of Italian firms, especially of SMEs, can be traced back to the low levels of three factors: i) workers’ skills, ii) management capabilities, and iii) accumulation of intangible assets. These factors are also crucial to maximise the effectiveness of public policies supporting firm digitalisation, such as the deployment of broadband infrastructure and fiscal incentives to investments in digital technologies. Finally, the analysis shows that the COVID-19 crisis contributed to further widening the digital gap between Italian firms, favouring ex-ante more digitalised companies, suggesting that public policies play a crucial role for the post-COVID-19 recovery.
    Date: 2022–03–15
  17. By: Holger Graf (Friedrich Schiller University Jena, Department of Economics); Martin Kalthaus (Friedrich Schiller University Jena, Department of Economics)
    Abstract: Various forms of interaction during the process of research and innovation constitute a global network of knowledge generation and diffusion. Countries and their research organizations and individual scientists need to be embedded in this network to participate in global knowledge flows and to increase success in idea generation, invention and innovation. In this chapter, we review the literature on two of the most important channels of international knowledge diffusion in the field of science: research collaboration and scientist mobility. We thereby focus on the motives and determinants to collaborate or move internationally, the formation of a global knowledge network and the effects of embeddedness in the network and its influence on aggregate outcomes. From this review, we derive seven stylized facts on global knowledge embeddedness.
    Keywords: scientist mobility, research collaboration, global knowledge network, literature review
    JEL: O33 F60 O15
    Date: 2022–03–08
  18. By: Honda, Tomohito
    Abstract: This study examines how credit lines affect corporate cash holdings and capital investment, using hand-collected data on credit lines for publicly traded Japanese firms for 2006–2017. Although theoretical research has explained the effects of credit lines in terms of the extensive margin, previous empirical studies have investigated the impacts of credit lines focusing on the intensive margin. Against this background, the present study concentrates on the extensive margin of the effects of credit lines and compares firms that have access to credit lines with those that do not. The empirical results are as follows: (1) firms with credit lines hold lower cash reserves than those without; (2) firms with credit lines undertake more capital investment than firms without; and (3) once firms gain access to credit lines, their cash holdings decrease and their capital investment increases. These empirical findings are consistent with the predictions of the theoretical literature and suggest that credit lines improve firms’ financial flexibility and enable firms to use cash holdings held for precautionary reasons for investment instead.
    Keywords: Credit lines, Cash holdings, Corporate investment, Financial constraints
    JEL: G31 G32
    Date: 2022–03

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