The short- and long-term effects of changing financial market conditions on corporate financing, innovation activities and firm performance

• Applicant: Professor Dr. Kornelius Kraft
• Subject Area: Economic Policy, Applied Economics
• Term: from 2019 to 2024
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 423216702

The aim of this project is to investigate the relationships between changes in financial market conditions and innovation activities, as well as furthermore on sales, value added development and return on equity. In particular, the (negative) effects of the financial market crisis on individual banks on the one hand and their corporate customers‘ fundamental performance indicators on the other hand will be examined. Furthermore, the effects of the Basle II Accord regulations on the innovation behaviour of German companies will be included. In the Basle II agreements, a more precise risk assessment (than was previously customary) was laid down. As innovation activities such as research and development (R&D) projects are always highly risky, these new rules may well have consequences for innovation projects. This project intends to combine different data sources such as Bankscope (Bureau van Dijk), dafne (Bureau van Dijk), Mannheimer Innovationspanels (ZEW), Credtreform, Patstat (European Patent Office) and FuE Angaben (Stifterverband für die Deutsche Wissenschaft).

• DFG Programme: Research Grants