Patent Pledge and Corporate Risk-Taking: A Quasi-Natural Experiment from China's Patent Pledge Pilot

Abstract

Intellectual property pledge financing, as a novel financing method, plays a significant role in alleviating financial constraints for enterprises and encouraging them to increase their risk-taking levels. Empirical research results demonstrate that patent pledging significantly enhances the risk-taking levels of enterprises. Further studies reveal that the effect of patent pledging on enhancing corporate risk-taking is more pronounced in samples with greater financing constraints and higher human capital. These research findings provide substantial micro-level evidence for the state to further promote the objectives of the patent pledge policy.