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Research Details
Product Innovation and Credit Market Disruptions, The Review of Financial Studies
Abstract
We provide new evidence that disruptions in firms’ access to credit during the Global Financial Crisis significantly affected product innovation in the consumer goods sector. We combine highly granular retail scan data with lending data and find that credit-constrained firms introduced fewer new products, those products were less novel, and new products sold less well. Overall, these findings suggest that disruptions to credit markets impair firms’ ability to compete for profits through new product offerings.
Type
Article
Author(s)
Sara Moreira, Joao Granja
Date Published
2021
Citations
Moreira, Sara, and Joao Granja. 2021. Product Innovation and Credit Market Disruptions. The Review of Financial Studies.