 Economic policy uncertainty, bank loan, and corporate innovationJing Tian, Haiwei Li and Pin You Pacific-Basin Finance Journal, 2022, vol. 76, issue C Abstract: We explore the impact of EPU on corporate innovation and identify the mediating role of bank loans in the transmission process to better understand the influencing factors of corporate innovation. Based on Chinese listed firms in the manufacturing industry from 2008 to 2018, we discover that heightened EPU is associated with a significant reduction in bank lending and the granted patents of listed firms. In addition, we find direct evidence of the hindering effect of bank loans on granted patents. The adverse effects of EPU and bank loans on corporate innovation are more prominent for non-SOE firms, firms with difficulty accessing external financing, and firms in concentrated industries. The results indicate that the negative relationship between EPU and corporate innovation cannot be attributed to credit contraction. Further research indicates that bank loans may help to facilitate innovation during periods of high EPU due to the positive influence of short-term loans. Our findings contribute to promoting corporate resilience to EPU shocks and facilitating innovation. Keywords: Economic policy uncertainty (EPU); Bank loan; Corporate innovation; Mediating effect; Moderating effect (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:76:y:2022:i:c:s0927538x22001688 DOI: 10.1016/j.pacfin.2022.101873 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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