Mo.Fi.R. Working Papers (2022)

Mo.Fi.R. Working Papers (>> Mo.Fi.R. website)

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  • Paper nr. 174
Title: Alternative financing and investment in intangibles: evidence from Italian firms
Authors: Gabriele Beccari, Francesco Marchionne, Beniamino Pisicoli
Abstract:
This paper uses the Italian 2012 reform that introduced minibonds, a financial instrument specifically designed for SMEs, to check whether more accessible market-based finance promotes investment in intangibles. We apply a propensity score matching to address selection bias, run diff-in-diff estimates over 1,454 different samples to test our hypotheses, and use a meta-analysis to summarize the results.
We find that minibond-issuing firms increase investments in intangible assets, a component difficult to finance via bank credit, more than other firms and investments in tangibles. Two mechanisms are at work: minibond issuances increase financial resources available to the firm (financial effect) and, above all, signal an improvement in business practices (reputational effect). These effects are more intense for smaller, more opaque, and bank-dependent firms. Our results are not affected by model dependence or endogeneity issues and are robust to different specifications.
 
  • Paper nr. 173
Title: Job protection and mortgage conditions: Evidence from Italian administrative data
Authors: Paolo Emilio Mistrulli, Tommaso Oliviero, Zeno Rotondi, Alberto Zazzaro
Abstract:
In this paper we combine administrative data from the Italian National Institute for Social Security and proprietary data from a major Italian commercial bank to analyse the impact of job protection legislation on mortgage conditions. An exogenous change in the degree of job protection against individual dismissals of workers with open-ended contracts is identified by exploiting the 2015 Labor market reform, the so-called Jobs Act, which reduced employment protection of newly hired employees in medium and large private firms. We find that the weaker job security induced by the 2015 legislation change leads to a lower mortgage amount and a lower leveraging capacity, as measured by the loan-to-value ratio. Furthermore, the effect of job insecurity is mitigated by the presence of co-mortgagors while it is amplified for young and low-income mortgagors.
 
  • Paper nr. 172
Title: Public guarantees and credit additionality during the Covid-19 pandemic
Authors: Giuseppe Cascarino, Raffaele Gallo, Francesco Palazzo, Enrico Sette
Abstract:
We study the public loan guarantee programs implemented in Italy in the aftermath of the Covid-19 pandemic. Guided by a theoretical model and relying on a unique loan-level dataset covering the period between December 2019 and March 2021, we quantify to what extent public guarantees created additional credit across programs with different coverage ratios and over time. We also document that bank capitalization affected additionality for loans with lower coverage, in which banks have more skin in the game. In contrast, the additionality of the public guarantees varied very little across firms with different levels of risk, liquidity, and size.
 
  • Paper nr. 171
Title: Venture Capital Financing and Green Patenting
Authors: Andrea Bellucci, Serena Fatica,  Aliki Georgakaki,Gianluca Gucciardi, Simon Letout, Francesco Pasimeni
Abstract:
This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset that matches information on VC transactions, companies' balance sheet variables and data on patented innovation at the firm level over
the period 2008-2017. Taking advance of a novel granular definition of green innovative activities that tracks patents at the firm level, we show that green innovators are more likely to receive VC funding than firms without green patents. Likewise, a larger share of green vs. non-green patents in a firm's portfolio increases the probability of receiving VC finance. Robustness checks and extensions tackling several dimensions of heterogeneity corroborate the view that green patenting is an important driver of VC funding.