Financial regulation, financing constraints, and enterprise innovation performance

Chenxi Wang, Xincai Deng, Deli Wang and Xingguang Pan

International Review of Financial Analysis, 2024, vol. 95, issue PB

Abstract: This paper aims to examine the impact of stringent financial regulation on corporate research and development (R&D) investment. To this end, it takes the introduction of the New Regulation on Capital Management in 2018 as a quasi-natural experiment and selects the data of China's A-share listed companies from 2014 to 2022 as a sample. Results reveal that the introduction of the New Regulation on Capital Management improves enterprises' innovation performance. The lower the financing constraints for enterprises, the more pronounced is the effect of the New Regulation on Capital Management on the enhancement of their R&D investment.

Keywords: Financial regulation; R&D investment; Financing constraints (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:95:y:2024:i:pb:s1057521924003193

DOI: 10.1016/j.irfa.2024.103387

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