The Impact of Commercial Credit on Firm Innovation: Evidence from Chinese A-Share Listed Companies

Tinghua Liu, Jingru Wang, Dilesha Nawadali Rathnayake and Pierre Axel Louembé
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Tinghua Liu: School of Economics, Shandong University of Technology, Zibo 255012, China
Jingru Wang: School of Economics, Shandong University of Technology, Zibo 255012, China
Dilesha Nawadali Rathnayake: School of Economics, Shandong University of Technology, Zibo 255012, China
Pierre Axel Louembé: School of Accounting, Dongbei University of Finance & Economics, Dalian 116025, China

Sustainability, 2022, vol. 14, issue 3, 1-23

Abstract: This paper analyses the data on Chinese A-share listed companies from 1996 to 2019, using fixed-effect regression and the double-difference method to systematically examine the impact of commercial credit on enterprise technological innovation. The study found that the acquisition and provision of commercial credit has promoted the number of enterprise technological innovations and significantly improved their quality. In particular, the innovation of highly constrained companies is promoted by financing. Our findings help to solve the obstacles enterprises face in breaking through financing constraints and improving the efficiency and quality of their innovative efforts. The financing system has a significant influence on promoting the sustainable development of innovative enterprises.

Keywords: commercial credit; technological innovation; sustainable development; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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