The Effects of Financing Channels on Enterprise Innovation and Life Cycle in Chinese A-Share Listed Companies: An Empirical Analysis

Shixian Ling, Guosheng Han, Dong An, Armigon Akhmedov, Hui Wang, Hui Li and William Cannon Hunter
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Shixian Ling: Business School, Shandong University, Weihai 264209, China
Guosheng Han: Business School, Shandong University, Weihai 264209, China
Dong An: College of Business Administration, Hebei Agricultural University, Baoding 071001, China
Armigon Akhmedov: Department of Hotel Management, Graduate School, Kyung Hee University, Seoul 02447, Korea
Hui Wang: College of Business Administration, Hebei Agricultural University, Baoding 071001, China
Hui Li: School of Economics and Management, Harbin Institute of Technology, Weihai 264209, China
William Cannon Hunter: Department of Convention Management, College of Hotel & Tourism Management, Kyung Hee University, Seoul 02447, Korea

Sustainability, 2020, vol. 12, issue 17, 1-22

Abstract: This paper offers an empirical analysis of the effects of financing channels on innovation and the regulatory effect of the enterprise life cycle based on data published from 2008 to 2017 on publicly traded companies in China. The results show that government subsidies, tax preferences, self-owned funds, and equity financing have significant positive incentives for enterprise innovation, and the incentive intensity is gradually weakened while bank loans will hinder enterprise innovation. The impacts of various financing channels on enterprise innovation vary with the different stages of the enterprise life cycle, and the overall performance is weakened with the advancement of the life cycle. According to the grouping research of property rights, it is found that the impacts of various financing channels on the innovation of non-state-owned enterprises are more significant than those of state-owned enterprises. Further research finds that the influence of each financing channel on enterprise innovation is U-shaped or inverted U-shaped, indicating that there is a moderate range of each financing channel. This study is of great significance to fully understand the impacts of various financing channels on enterprise innovation and the regulatory role of the enterprise life cycle and to optimize the allocation of innovation resources.

Keywords: financing channel; enterprise innovation; life cycle; financial subsidy; tax preference; self-owned funds (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:17:p:6704-:d:400931

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