Real effects of lending-based crowdfunding platforms on the SMEs
Olena Havrylchyk and
Aref Mahdavi-Ardekani
Additional contact information
Aref Mahdavi-Ardekani: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Authors registered in the RePEc Author Service: Aref Mahdavi Ardekani (aref.mahdavi@dcu.ie)
Post-Print from HAL
Abstract:
This paper explores the short_term impact of borrowing via lending_based crowdfunding on performance and health of small and medium enterprises (SMEs) in France. We find that firms borrowing from lending-based crowdfunding platforms are more dynamic (higher asset growth and higher profitability) and innovative, but they have lower leverage, less cash, higher funding costs and less tangible assets that could be pledged as as collateral. To account for this selection bias, we construct three control groups by using Propensity Score Matching, Mahalanobis Distance Matching and Coarsened Exact Matching methods and then run difference-in-difference regressions. We find that borrowing via lending-based crowdfunding platforms increases SMEs' leverage and interest rate burden in the short-term, but these impacts disappear after two years. We observe asset growth during the year of borrowing, but no impact on sales growth, investment, employment or profitability.
Keywords: lending-based crowdfunding; firm financing; firm performance; informational asymmetry (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-cwa, nep-ent, nep-pay and nep-sbm
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02994903
References: Add references at CitEc
Citations:
Published in 2020
Downloads: (external link)
https://shs.hal.science/halshs-02994903/document (application/pdf)
Related works:
Working Paper: Real effects of lending-based crowdfunding platforms on the SMEs (2020)
Working Paper: Real effects of lending-based crowdfunding platforms on the SMEs (2020)
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:hal:journl:halshs-02994903
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).