Financialization and Innovation of Chinese Listed Firms: An Empirical Appraisal

Salim Slimani and Said Souam
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Salim Slimani: University of Bechar (Algeria)
Said Souam: EconomiX, CNRS, Paris Nanterre University (France)

IJEP, 2025, vol. 8, issue 02, Pages : 46-66

Abstract: This article thoroughly examines the links between financialization and innovation activities of a sample of 312 publicly listed Chinese firms for the period 2000-2023, encompassing the crucial post-pandemic recovery phase. We utilize various panel models, including fixed effects, random effects, and dynamic estimations across different periods and financial contexts. According to our research, financialization has a negative impact on firms’ innovation rates. It harms financially constrained firms more strongly, and its impact increases over time, starting at -0.08 in the 2000-2010 period and reaching -0.22 in the 2016-2023 period. Our findings offer policy recommendations that could help mitigate the adverse effects of growing financialization on the innovation of Chinese firms.

Keywords: financialization; innovation; panel data; Chinese economy; intangible assets; R&D investment; financial constraints; corporate governance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bjm:ijep00:v:8:y:2025:i:02:id:376

DOI: 10.54241/2065-008-002-004

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