Economics at your fingertips  

Innovative behavior and the Chinese enterprise survival risk: an empirical research

Zongke Bao ()
Additional contact information
Zongke Bao: Zhejiang University of Finance and Economics

China Finance and Economic Review, 2016, vol. 4, issue 1, 1-20

Abstract: Abstract The Chinese firms face enormous survival risk in economic transition, with an average life expectancy of less than 4 years. We employ propensity score matching and Cox model to overcome the sample bias and right censoring, investigate the inhibitory effect of innovation to firm survival risk both static and dynamic dimensions. There are the following findings from this paper. First, compared with the non-innovative enterprises, the innovative enterprises own higher competence of risk resistance, as innovative activities can release about 12% survival risk for enterprises and extend their survival time by 0.84 year. Second, the influence of innovative intensity on the enterprises’ survival probability presents the characteristics of being non-stationary rather than proportional, which means the stronger innovative intensity will not necessarily bring more obvious inhibition effect. Third, the characteristics of being different within enterprises will change the effect of innovation activity on inhibiting survival risk. The survival incremental effect of large-scale enterprises with high productivity through innovative activities is more apparent, as innovative activities help to relieve the agglomeration of survival risk from those long-established enterprises. But those enterprises with financing limit are not suitable for innovative activities.

Keywords: Innovative behavior; Survival risk; Cox risk model; Treatment effect; D21; L25; L60 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40589

DOI: 10.1186/s40589-016-0044-9

Access Statistics for this article

China Finance and Economic Review is currently edited by Shunan Yu

More articles in China Finance and Economic Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2023-05-18
Handle: RePEc:spr:chfecr:v:4:y:2016:i:1:d:10.1186_s40589-016-0044-9