This research paper investigates whether government financial assistance facilitates Australian business’ access to external financing. It finds that firms that receive government assistance are more likely to apply for and receive debt or equity financing.
government financial assistance makes firms more likely to apply for financing
government financial assistance also makes firms more likely to obtain financing once they apply
government assistance substantially improves the chances for young small firms to secure financing for innovation
subsidies and rebates increase chances of financing
tax concessions only increase chances of financing for innovative firms