Does anti-corruption campaign promote corporate R&D investment? Evidence from China

Weiyu Gan and Xixiong Xu

Finance Research Letters, 2019, vol. 30, issue C, 292-296

Abstract: We investigate the impact of China's anti-corruption campaign on corporate innovation. Our empirical results corroborate a significant positive association between anti-corruption intensity and firm's R&D expenditures, which indicate that firms headquartered in provinces with stronger anti-corruption efforts, are less likely to choose relation-orientated strategy, and thus invest more in R&D activities. In addition, compared with SOEs, the positive effect of anti-corruption on R&D spending is more pronounced for Non-SOEs. This paper provides insights for understanding the impact of corrupt environment on firm performance and its underlying path.

Keywords: Anti-corruption; Corporate innovation; Relation-orientated strategy; R&D investment (search for similar items in EconPapers)
JEL-codes: D73 O38 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:30:y:2019:i:c:p:292-296

DOI: 10.1016/j.frl.2018.10.012

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