Information Technology in Banking and Entrepreneurship
Toni Ahnert,
Sebastian Doerr,
Nicola Pierri and
Yannick Timmer
No 11284, CESifo Working Paper Series from CESifo
Abstract:
We study the importance of information technology (IT) in banking for entrepreneurship. Guided by a parsimonious model, we establish that job creation by young firms is stronger in US counties more exposed to banks with greater IT adoption. We present evidence consistent with banks’ IT adoption spurring entrepreneurship through a collateral channel: entrepreneurship increases by more in IT-exposed counties when house prices rise. Further analysis suggests that IT improves banks’ ability to determine collateral values, in particular when collateral appraisal is more complex. IT also reduces the time and cost of disbursing collateralized loans.
Keywords: technology in banking; entrepreneurship; information technology; collateral; screening (search for similar items in EconPapers)
JEL-codes: D82 G21 L26 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ent, nep-fdg and nep-ict
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https://www.cesifo.org/DocDL/cesifo1_wp11284.pdf (application/pdf)
Related works:
Working Paper: Information technology in banking and entrepreneurship (2024) 
Working Paper: Information Technology in Banking and Entrepreneurship (2024) 
Working Paper: Information Technology in Banking and Entrepreneurship (2022) 
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11284
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