Enterprise Innovation Investment Research Articles

Board Team Faultlines and Enterprise Innovation Investment

This paper selects the data of China's A-share listed companies from 2012 to 2022 to study the relationship between the board of directors' fault zones and firms' innovation investment. It is found that the larger the board team faultlines is, the more board members can utilize their respective expertise, which has a positive impact on innovation investment; the unity of the duality of the board of directors can enhance the positive impact of the board team faultlines on the innovation investment of the enterprise. Compared with state-owned enterprises, non-state-owned enterprises are more enthusiastic about exerting the board's subjective ability to enhance innovation strategies.

Work Experience of Private Entrepreneurs in SOEs and Enterprise Innovation Investment: Evidence from China

ABSTRACT Private enterprises are important due to their innovation-driven development strategies. There are many private entrepreneurs in China who have experience working in state-owned enterprises (SOEs), and how entrepreneurs’ SOE work experience affects enterprise innovation investment has not yet been sufficiently studied. Based on imprinting theory and using data from a survey of private enterprises in China, our study confirms that private entrepreneurs’ SOE work experience promotes enterprise innovation investment. Mechanism tests suggest that political connections and policy perceptions are mediating mechanisms. Entrepreneurs’ educational background reinforces the mediating roles. This paper enriches the research on imprinting theory and enterprise innovation.

Does tax symmetry improve corporate innovation investment? Evidence from the change policy of loss carrying forward period in China

Taking China's A-share listed companies with high-tech enterprise qualification from 2015 to 2020 as a sample, we find that the increase of tax symmetry can significantly improve enterprise innovation investment; agency conflict has a significant negative regulatory effect. Further, this paper empirically tests the role path of tax symmetry on enterprise innovation investment. The results show that tax symmetry mainly promotes the level of enterprise innovation investment by improving the level of enterprise risk-taking, which supports the government's "sleeping partner" hypothesis. Therefore, it is suggested that the government should enhance tax symmetry and act as a "sleeping partner" of enterprises, which has important enlightenment significance for stimulating enterprises to increase their enthusiasm for innovation. Under the background of China's emerging economy, this study will contribute to the references of tax policies and enterprise innovation.

Research on Customer Relationship, Market Level and Enterprise Innovation Relationship

Enterprise innovation is an important content of enterprise management and a key element to determine the direction, scale and speed of the development of the company. Enterprise innovation has always been the focus of academic attention. Customer relationship is the contractual relationship established between the enterprise and the customer when purchasing and selling transactions. The research found that customer relationship can affect the innovation investment of enterprises to some extent. Based on a sample of listed companies in China's A stock manufacturing industry from 2008 to 2018, this paper empirically examines the impact of concentration of customer relationship on innovation output and its mechanism. The research found that the higher the concentration of customer relationship, the lower the innovation investment. Further research found that the level of marketization can alleviate this inhibition, with the promotion of market-oriented level, the excessive concentration of customer relations on enterprise innovation inhibition can be weakened. This research explores the factors that affect enterprise innovation from different angles, enriches the research on enterprise innovation, and provides a reference for enterprises to improve their innovation level.

Retracted: Participation in Targeted Poverty Alleviation and Enterprise Innovation Investment: Analysis of the Mediating Effect Test Model Based on Financing Constraints

Retracted: Participation in Targeted Poverty Alleviation and Enterprise Innovation Investment: Analysis of the Mediating Effect Test Model Based on Financing Constraints

Exploitation or Exploration? Managerial Myopia, Economic Policy Uncertainty and Ambidextrous Innovation Investment

In today’s increasingly competitive international environment, original technology innovation has become essential for enhancing enterprises’ sustainability. As key innovation needs constant exploration rather than growing leaps and bounds, it is often ignored by managers who focus on short-term performance. Taking the data of publicly listed Chinese companies from 2010 to 2020 as a sample, this paper put forward the relation between managerial myopia and ambidextrous innovation investment on the basis of a empirical approach combining machine learning technology. Results revealed that managerial myopia has different effects on the ambidextrous innovation investment of enterprises. Specifically, the study finds a significant negative association between managerial myopia and exploratory innovation investment, while there is no significant relationship with regard to exploitative innovation investment. Further study showed that the negative influence is weakened by economic policy uncertainty and stronger in companies with more severe agency problems. By shedding light on the way that managerial myopia affects enterprises’ ambidextrous innovation investment, this research contributes to the literature on the impact of managerial myopia, offering key insights into how to cultivate the core competitiveness of enterprises and ensure their sustainable development.

Operating Leverage, Equity Incentive, and Enterprise Research and Development Investment

Science and technology innovation plays a vital role in the sustainable development of enterprises, and even in the security and sustainable development of a nation. Against the background of China’s structural “deleveraging” macro policy, the following two aspects are considered in this research: First, should operating leverage be removed, and how does it affect the innovation investment of enterprises? Second, what will be the impact of the implementation of equity incentives on the relationship between operating leverage and innovation investment? Using a longitudinal panel dataset of Chinese A-share listed companies from 2010 to 2020, this study empirically tested the impact and mechanism of operating leverage on enterprise innovation investment. The findings show that operating leverage significantly contributes to an increase in enterprise innovation investment in general, but the positive correlation trend decreases with the increase in operating leverage. The implementation of equity incentives plays a positive role in moderating the relationship between operating leverage and innovation investment. Further heterogeneity analysis shows that the promotion effect of operating leverage on innovation investment is significant only in non-state owned enterprises (SOE), and the positive regulating effect of equity incentives in non-SOEs is more significant than that of the overall sample.

Research on the Impact of Innovation Investment on the Enterprises Value of Chinese STAR Market

This paper explores the relationship between innovation investment and enterprise value of Chinese innovation board enterprises, as well as the adjustment effect of different equity incentive intensity and the validity period of equity incentive. After theoretical and empirical research, there is a significant relationship between the innovation investment and the enterprise value of the science and technology innovation board enterprises, and the equity incentive also affects this relationship to a certain extent. In this regard, this paper puts forward relevant suggestions from different angles, hoping to provide help to the future development and value enhancement of the science and technology innovation board enterprises.

The Contract Design of Employee Stock Ownership Plan and Enterprise Innovation Investment: Evidence from China

Enterprise innovation is a key driver of national economic growth. How to stimulate employees’ innovation vitality to improve the company’s innovation input and output has always been a hot topic. Employee Stock Ownership Plan (ESOP) is one of the effective means to stimulate employees’ innovation vitality by linking employee wealth with firm value. The purpose of this paper is to examine the effect of ESOP implementation and contract design on enterprise innovation investment in the context of the recent booming development of ESOP in China. First, we use a treatment effect model to examine the impact of ESOP implementation on innovation investment, taking firms that implement ESOPs as the treatment group and firms that do not implement ESOPs as the control group. Second, we use multivariate regression models to test the impact of ESOP contract design (including fund source, stock source, lockup period, duration, shareholding scale, executive subscription ratio, participation degree, and management mode) on innovation investment using the treatment group. The results indicate that the implementation of ESOP is helpful in increasing enterprise innovation investment, and the impact of ESOP on innovation investment varies significantly with the design of incentive contracts.

Intellectual Property Rights Protection, Science and Technology Intensity and Enterprise Innovation Investment

Using the data sets of Chinese A-share listed companies from 2013 to 2017, we investigate the relationship between intellectual property rights (IPR) protection and innovation investment. The results show that IPR protection has positive effect on innovation investment and this positive relation is less announced among the firms with strong science and technology intensity. This research enriches the existing papers with the innovation effect of IPR protection, enlightens institutional reform in the field of intellectual property rights, and stimulates the innovation vitality of enterprises.

Does resident leverage volatility affect corporate profitability?: An empirical study from Chinese A‐share listed companies

AbstractThe increase in resident leverage is expected to promote the growth of retail consumption, thereby creating favorable macro conditions for companies to reduce leverage and destock. However, the increase in resident leverage in China has been accompanied by a continuous decline in the growth of retail consumption, which has a negative impact on the external environment of enterprises. The unbalanced panel data of 2218 nonfinancial listed companies in China from 2010 to 2018 were used to investigate the relationship and mechanism between resident leverage and corporate profitability. The empirical results show that the increase in resident leverage has a negative impact on the profitability of Chinese companies. In addition to the direct impact, resident leverage has a transmission mechanism that affects corporate profitability through debt level, degree of financialization, and degree of zombification. In order to avoid the heterogeneity of research results caused by differences in corporate characteristics, the heterogeneity test was conducted by distinguishing the nature of enterprise ownership, innovation input, and financing constraints. The test of the heterogeneity of enterprise ownership shows that residents' increased leverage has a greater restraint on the profitability of state‐owned enterprises than private enterprises. The test of the heterogeneity of enterprise innovation investment shows that residents' increasing leverage reduces the profitability of high‐innovation enterprises more strongly than low‐innovation enterprises. The heterogeneity test of financing constraints shows that residents' increasing leverage has a more obvious effect on reducing the profitability of companies with high financing constraints than with low financing constraints.

政策不确定性与企业创新投资决策——基于实物期权模型

政策不确定性与企业创新投资决策——基于实物期权模型

Corporate Social Responsibility and Innovation Input: An Empirical Study Based on Propensity Score-Matching and Quantile Models

Social responsibility performance and innovation investment are two important aspects of corporate strategy, and there is no consensus as to whether they are competing or complementary goals in an enterprise. Using propensity score-matching, ordinary least squares, and quantile regression, the study shows that the voluntary disclosure of social responsibility by enterprises will increase innovation investment. In other words, corporate social responsibility has a significant positive impact on innovation and investment; however, with the increase in enterprise innovation investment, this impact gradually weakens.

The impact of economic policy uncertainty on firms' investment in innovation: Evidence from Chinese listed firms.

This paper uses data of Chinese listed enterprises and economic policy uncertainty index for empirical analysis, and conducts a study through three channels of monetary policy uncertainty affecting enterprise innovation investment, and finds that economic policy uncertainty has a positive promotion effect on enterprise R&D investment, and its increase in tension is instead a clear signal that can effectively increase enterprise R&D investment, this promotion effect seems unexpected, this paper Through theoretical analysis and combined with the actual practice, this incentive effect is found to be in line with reality. However, in the subsequent heterogeneity analysis, this paper finds that it positively promotes R&D investment when economic policy uncertainty is low and may have a suppressive effect on R&D investment when monetary policy uncertainty is high.

Ownership, Corporate Governance and Enterprise Innovation-- Empirical Evidence from Shanghai and Shenzhen A-share Listed Companies

Based on the data of non-financial listed companies in Shanghai and Shenzhen A-shares from 2008 to 2018, this paper empirically analyzes the relationship between enterprise ownership, corporate governance, and enterprise innovation and its influencing mechanism based on the panel data fixed effect regression model. The empirical results show that, firstly, there is a positive correlation between corporate governance level and enterprise innovation investment, that is, good corporate governance will promote enterprise innovation. Secondly, enterprise ownership positively regulates the positive relationship between corporate governance level and enterprise innovation investment. Further analysis results show that: thirdly, the above conclusions are more obvious in listed companies with low power concentration. The conclusion of this paper has great significance for improving corporate governance and promoting the healthy development of enterprise innovation and ownership reform.

Bank Competition, Financing Constraints, and Enterprise Innovation Investment

Based on the data of China’s listed companies from 2007 to 2020 and the financial license of the China Banking and Insurance Regulatory Commission, this paper analyzes the influence of bank competition on enterprise innovation investment and its mechanism. It is found that bank competition can improve the enterprise innovation investment, which still holds true after endogenous treatment and robustness test. Further research demonstrates that bank competition plays a stronger role in enterprise innovation for non-state-owned enterprises and small-scale enterprises. The mechanism analysis shows that bank competition can promote enterprise innovation investment and enterprise financialization by easing financing constraints. Moreover, enterprise financialization has a crowding-out effect on enterprise innovation investment. Therefore, moderately intensifying bank competition, further improving the financial system, and deepening the financial marketization reform have profound effects on driving enterprise innovation and its high-quality development.

Participation in Targeted Poverty Alleviation and Enterprise Innovation Investment: Analysis of the Mediating Effect Test Model Based on Financing Constraints

In China, enterprises participating in targeted poverty alleviation can be provided with a strategic resource to enhance their ultimate value creation ability and directly win reputation and obtain sustainable competitive advantages, thus enhancing their innovation ability. In this study, the influence and mechanism of the participation in targeted poverty alleviation on enterprise innovation investment are empirically examined based on financing constraints with the data of nonfinancial listed companies in Shanghai and Shenzhen from 2012 to 2019 as the object. The research suggests that enterprises taking the initiative to participate in targeted poverty alleviation can first have increased innovation investment and especially enhanced exploratory innovation ability. Second, enterprises’ participation in targeted poverty alleviation can reduce financing constraints of enterprises’ innovation, improve their resource allocation efficiency, and stimulate their innovation vitality primarily through the influence of resource, reputation, and information. This study enriches the theoretical research on the economic consequences of targeted poverty alleviation and provides a reference for guiding enterprises in practice to fulfill social responsibilities to promote enterprises’ innovation vigor and boost their high-quality development.

Government intervention, internal control, and technology innovation of SMEs in China.

Under the innovation-driven development strategy, the improvement of the core competitiveness of enterprises demonstrates increasing dependence on the ability of technological innovation. In this article, data of A-share listed companies in Shanghai and Shenzhen stock markets from 2008 to 2018 were selected as research samples for the analysis of the influencing factors and mechanism of enterprise technological innovation from the dual perspectives of the external economic environment and internal management system based on the use of the fixed-effect model. The results show that government intervention significantly hinders enterprises' investment in resources for technological innovation, and less government intervention can improve the innovation investment of enterprises. The intervention of internal control fails to bring institutional advantages; rather, it aggravates the negative effect of government intervention on enterprise technological innovation. The research enriches the existing academic research results on government intervention, internal control quality, and enterprise technological innovation. The findings provide experience for accelerating the marketization process in China, enterprise governance, and improving the level of enterprise technological innovation.

Socio-Emotional Wealth, Innovation Environment, and Innovative Investment Path of Family Enterprises: Implications for Environmental Accountability.

Driven by social development, family enterprises continue to grow in terms of scale and number, becoming an important force that promotes China's economic development, and how to achieve the healthy growth of family enterprises has become an inevitable topic. With the increasingly fierce market competition, more and more family businesses have changed from a single market model to cross-industry operation, trying to seek new growth points through industry diversification. Multiculturalism is the product of a particular era, and it is closely related to the great changes in society in a specific era, including new changes in the fields of family, marriage, religion, education, and race relations and even to the international context. Multiculturalism is a theoretical response to these changes and represents the current cultural research tendencies of the international academic community. Socio-emotional wealth and an innovative environment are particularly important for family businesses in a multicultural context. The article first introduces the social emotional wealth and the innovation investment of family enterprises, then focuses on the impact of the innovation environment on the innovation investment of family enterprises, and analyzes the influence mechanism of social emotional wealth and innovation environment on family innovation investment, so as to put forward corresponding countermeasures and suggestions, which also has certain guiding significance for the innovation management and practice of Chinese family enterprises.

Impact of Managerial Reputation and Risk-Taking on Enterprise Innovation Investment From the Perspective of Social Capital: Evidence From China.

China’s enterprises established in the emerging economy are relatively short of technological innovation resources; therefore, these enterprises need to make use of managerial reputation to break through organizational boundaries in order to obtain richer social capital and reshape their technological creativity to cope with the complex and a changeable international economic situation. This corporate phenomenon also serves as the key for China’s economy to advance to the stage of high-quality development. Based on the panel data of Chinese A-share listed companies from 2007 to 2016, this paper adopts the Heckman two-stage evaluation model to empirically study the impact of managerial reputation on enterprise innovation activities, the moderating role of corporate governance, and the mediating role of risk taking. From the standpoint of social capital, the findings indicate that managerial reputation promotes enterprise innovation investment. The mechanism test reveals that this correlation is realized through the mediating role of risk taking. Furthermore, the promotion effect of management reputation on enterprise innovation investment is stronger when the enterprises adopt the CEO duality, the larger board size, higher management ownership, and stronger equity restriction. The conclusions of this study confirm the important role of social capital in enterprise innovation in the context of the Chinese economy. The study implications also enrich and expand the research on the influencing factors of enterprise innovation investment that focus on the managerial reputation and provide important business inspiration for enterprises to build reputation management strategy and promote the transformation and upgrading of local enterprises.