Information Technology in Banking and Entrepreneurship
Toni Ahnert,
Sebastian Doerr,
Nicola Pierri and
Yannick Timmer
No 17335, CEPR Discussion Papers from C.E.P.R. Discussion Papers
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: 2022-05
References: Add references at CitEc
Citations:
Downloads: (external link)
https://cepr.org/publications/DP17335 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
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 (2024) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:17335
Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP17335
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().