Policy uncertainty and corporate innovation in a transitional economy: evidence from China

Xiaoyan Lu and Manni Zheng

Asia-Pacific Journal of Accounting & Economics, 2023, vol. 30, issue 4, 849-867

Abstract: This paper systematically studies whether external shocks of mayor turnover in prefecture level cities in China, proxied for policy uncertainty, result in a reduction of firms’ R&D spending. We find that policy uncertainty is negatively correlated with firms’ R&D spending under mayor turnover. This finding only exists in state-owned enterprises (SOEs) that are inherently and closely connected with regional governments. The negative effect between R&D spending and policy uncertainty is more profound for SOEs operating in an uncertain macroeconomic environment, facing high risk and having financial constraints.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2021.1987937 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:taf:raaexx:v:30:y:2023:i:4:p:849-867

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2021.1987937

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().