Capital structure and innovation for social progress: How high-tech firms shape economic development and institutional resilience in China

Fang Wen Jie (), Sharmila Devi Ramachandaran (), Bablu Kumar Dhar () and Rejaul Karim ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 5, 2298-2312

Abstract: This study investigates how capital structure and R&D investment strategies in high-tech listed companies contribute not only to firm performance but also to broader economic development and institutional resilience in China. In the face of a competitive global landscape that is intensifying and rapidly evolving technologically, high-tech enterprises are positioned as key actors in fostering innovation-driven growth, economic upgrading, and inclusive social progress. The empirical nature of the research involves examining financial information from high-tech companies to analyze the relationship between capital structure, R&D investment, firm size, and firm performance over a period of five years. This study adopts a quantitative approach by applying multiple regression analysis to measure the relationship between the independent variables and firm performance. More importantly, investment in R&D not only enhances innovation capacity and market adaptability but also reinforces national objectives related to technological self-reliance, green transformation, and the Sustainable Development Goals (SDGs). Grounded in both literature and practice, this study links several bodies of literature that have so far remained largely separate: corporate finance, strategic management, and innovation management. The findings contribute to ongoing debates on the role of private-sector financial strategies in achieving structural transformation, innovation, equity, and institutional strengthening in emerging economies. The results highlight the significance of maintaining a balanced capital structure and strategic investment in R&D to spur sustainable growth within high-tech industries. This research offers actionable insights for policymakers seeking to harness firm-level innovation for societal advancement and sustainable economic development.

Keywords: Capital structure; China; Economic transformation; High-tech industry; Innovation policy; Institutional resilience; Quality jobs; R&D investment; Sustainable growth. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ijirss.com/index.php/ijirss/article/view/9456/2124 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aac:ijirss:v:8:y:2025:i:5:p:2298-2312:id:9456

Access Statistics for this article

International Journal of Innovative Research and Scientific Studies is currently edited by Natalie Jean

More articles in International Journal of Innovative Research and Scientific Studies from Innovative Research Publishing
Bibliographic data for series maintained by Natalie Jean ().