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.
Highlights
Based on the above analysis, this paper proposes the following research hypotheses: Hypothesis 1 (H1): Provision of commercial credit and holding of enterprise funds positively impact an enterprise’s technological innovation
Private enterprises show more design over state-owned enterprises (SOEs), which shows that non-SOE has strong potential for technological innovation
Based on the quasi-natural experiment enabled by the Property Law of the People’s Republic of China of 2007, our study uses a double-difference method to systematically evaluate the causal relationship between commercial credit acquisition and the technological innovation provided by enterprises
Summary
Citation: Rathnayake, D.N.; Wang, J.; Louembé, P.A. The Impact of Commercial Credit on FirmInnovation: Evidence from ChineseA-Share Listed Companies.Sustainability 2022, 14, 1481. https://doi.org/10.3390/su14031481Academic Editors: Anna Visvizi and David K. DingReceived: 6 December 2021Accepted: 24 January 2022Published: 27 January 2022Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
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