State and foreign ownership combo boosts firms' financing and innovation.
Different types of ownership can impact how firms secure financing. Firms with both state and foreign ownership tend to receive more external finance compared to those with just one type of ownership. This increased financing mainly comes from private banks and new equity. Firms with only state or foreign ownership are less likely to expand in the market or innovate their products. The study used data from over 130 thousand firms in 139 economies to reach these conclusions.