Enterprise Innovation Investment Research Articles

Controlling shareholders' equity pledge and corporate innovation investment-empirical analysis based on pharmaceutical manufacturing.

Enterprise innovation investment is influenced by the actions of innovation subjects, whereas regulating shareholders' equity pledge behavior facilitates innovation investment and finance but also carries dangers and affects enterprise innovation investment. Methods:This paper builds an unbalanced panel model to empirically analyze the impact of controlling shareholders' equity pledges on corporate innovation and its heterogeneous characteristics. It also looks at the moderating role of corporate financing constraints and the mediating role of equity incentives, using data from A-share listed companies in China's pharmaceutical manufacturing industry from 2015 to 2022. Innovation investment is substantially inversely correlated with controlling shareholders' equity pledge; that is, firms' creative behavior and intensity are inhibited by equity pledge. Results and conclusions:The results also show that controlling shareholders' equity commitments have a more pronounced negative impact on enterprises' ability to innovate than non-state-owned and decentralized equity firms. The relationship between company innovation and the equity pledge of controlling shareholders is somewhat mediated by equity incentives. The relationship between controlling shareholders' equity promises and enterprises' innovation is negatively moderated by financing limitations, which also reduces R&D expenditure and stifles innovation.

Research on Corporate Innovation and Compensation Incentives

The optimal contract theory believes that the compensation contract can alleviate the agency contradiction between executives and shareholders. By making the interest goals of executives and shareholders converge, it can enhance the innovation willingness of senior executives to a certain extent, increase the innovation investment of enterprises, and then improve the performance of the company. However, the increase of investment in innovation will not necessarily improve the companys performance, and there may be an endogenous relationship between the two factors, which further complicates the issue of compensation incentive. This article sorts out the relevant literature on enterprise innovation and salary incentive, and discusses the relationship between salary incentive and enterprise innovation and its influence on the endogenous relationship between enterprise innovation and company performance. In addition, the possible influence of executive attachment characteristics on compensation incentive is also discussed.

Digitalization of Tax Administration and Corporate Innovation: Evidence from a Quasi-Natural Experiment based on the Golden Tax Phase III

The Golden Tax Phase III is a significant initiative in China's digital tax administration reform. To thoroughly investigate its impact on the innovation activities of Chinese enterprises, particularly the heterogeneous effects across different ownership structures, this study relies on a quasi-natural experiment based on the phased implementation of the Golden Tax Phase III. It employs a sample of A-share listed companies from 2007 to 2019 to examine the direct effects of digitalized tax administration on corporate innovation investment, supplemented by a series of robustness tests to ensure the reliability of the conclusions. The results indicate that digitalized tax administration generally suppresses the innovation investment of Chinese enterprises, with the inhibiting effect being more pronounced in non-state-owned enterprises. This finding provides important empirical references and decision-making basis for government departments to optimize regulatory strategies and balance tax administration with corporate innovation vitality in the era of digital economy.

Research on Corporate Innovation and Compensation Incentives

The optimal contract theory believes that the compensation contract can alleviate the agency contradiction between executives and shareholders. By making the interest goals of executives and shareholders converge, it can enhance the innovation willingness of senior executives to a certain extent, increase the innovation investment of enterprises, and then improve the performance of the company. However, the increase of investment in innovation will not necessarily improve the companys performance, and there may be an endogenous relationship between the two factors, which further complicates the issue of compensation incentive. This article sorts out the relevant literature on enterprise innovation and salary incentive, and discusses the relationship between salary incentive and enterprise innovation and its influence on the endogenous relationship between enterprise innovation and company performance. In addition, the possible influence of executive attachment characteristics on compensation incentive is also discussed.

Impact of ESG Performance on Enterprise Innovation Investment Evidence from China Listed Enterprises

Abstract: Innovation is also playing an increasingly important role in the process of transitioning to high-quality economic development. Therefore, it is imperative that enterprises, as micro-entrepreneurs improving the quality of economic growth, pay attention to the enhancement of their R&D capabilities. So how can positive ESG performance by firms alleviate financing constraints and thus promote R&D investment? Therefore, this paper investigates the impact of ESG performance and financing constraints on R&D investment, which is of great significance in promoting enterprises to pay attention to ESG management, alleviating financing constraints, and promoting the enhancement of R&D capability. The results of this study show that corporate ESG performance has a positive effect on R&D investment; corporate ESG performance has a negative effect on financing constraints; financing constraints play a partly intermediary role in the process of corporate ESG performance affecting R&D investment.

Business environment, financing constraints and enterprise innovation investment

This study utilizes a sample of A-share listed companies in China spanning from 2012 to 2022 to delve into the correlation between the business environment and corporate innovation investment. The findings reveal that a favorable business environment significantly bolsters corporate investment in innovation. Additionally, financing constraints emerge as a crucial intermediary factor, facilitating the enhancement of corporate innovation through improved business conditions. Notably, the business environment in both the eastern and central regions exerts a marked positive influence on innovation investment, with the eastern region demonstrating a more profound effect.

The impact of accounting conservatism on enterprise innovation investment

This study investigates the influence of accounting conservatism on corporate innovation investment through the lens of information asymmetry theory. While existing literature acknowledges the importance of accounting conservatism in corporate decision-making, there remains a gap in understanding how it specifically affects innovation investment, particularly in varied market environments and regulatory contexts. Specifically, current research often overlooks the heterogeneity of the impact of accounting conservatism on innovation investment under different market environments and regulatory frameworks. Additionally, there is a lack of specialized studies on the unique group of Chinese listed companies. This study fills this gap by empirically analyzing data from Chinese A-share listed companies, revealing a negative correlation between accounting conservatism and corporate innovation investment. Through empirical analysis of the financial reports and research and development (R&D) investment data of Chinese A-share listed companies from 2015 to 2022, this study finds a significant negative correlation between accounting conservatism and corporate innovation investment. Specifically, as accounting conservatism increases, corporate investment in R&D shows a decreasing trend, with a correlation coefficient of −0.364. This result is further validated by hierarchical regression analysis, where the regression coefficient is −0.465, indicating that accounting conservatism has a significant inhibitory effect on corporate innovation investment. This study is pioneering in its examination of the relationship between accounting conservatism and corporate innovation investment within the unique market environment of China, taking into account its distinctive characteristics and rapidly evolving technological industry background. To quantify accounting conservatism, the research employs the C-Score and G-Score models, while employing a range of indicators to measure corporate innovation investment, including proportions of R&D expenditure, number of new products or services, patent applications, total R&D personnel, capital investments, and progress in innovation projects. This comprehensive evaluation method enhances the accuracy and reliability of the study. The contribution of this study is significant as it offers a fresh perspective on how accounting conservatism influences corporate innovation investment. By providing empirical data support, it assists investors and corporate managers in making informed financial decisions and shaping innovation strategies. Through hierarchical regression analysis, the study substantiates the detrimental impact of accounting conservatism on corporate innovation investment, thereby establishing new theoretical and practical foundations for further research and application in related fields.

Tax Incentives, Confidence, and Enterprise Innovation in Chinese Listed Companies

ABSTRACT In this paper, we study the direct effect of tax incentives on enterprise innovation investment and the mediating effect of confidence on enterprise innovation investment using data from 3,900 annual reports of listed companies in China from 2008 to 2020 for data mining, and combine this with sentiment analysis to measure the business confidence index. We find that tax incentives are significantly and positively related to enterprise innovation investment and tax incentives are significantly and positively related to business confidence. Business confidence plays a significant partial mediating role between tax incentives and enterprise innovation investment, and tax incentives boost confidence by alleviating internal financing constraints. This study provides empirical evidence to help the government develop strategies to activate the confidence of market players and boost market expectations.

Impact of online communication on the ambidextrous innovation investment of enterprises

With the rapid progress of China's information technology and digital economy, investors, especially retail investors, can communicate directly with enterprises on online platforms of stock exchanges. In this paper, using crawler means to collect all the question-and-answer (Q&A) logs on online platforms and taking A-share listed firms in 2010∼2020 as samples, we explore the effect of online communication between investors and enterprises on corporate ambidextrous innovation investment. The results show that such online interaction can greatly encourage developmental and exploratory innovation investment and play a more significant effect in the latter; the quality of communication is positively related to ambidextrous innovation investment, but excessive attention to investor returns in the interaction process restrains ambidextrous innovation investment. We take various approaches, such as the entropy balancing test, the instrumental variable method, and the Heckman two-stage method, to confirm the validity of the results. The mechanism test shows that interaction can increase ambidextrous innovation investment mainly by alleviating corporate financing constraints and improving corporate governance. Furthermore, we find that this effect is more evident in state-owned firms than in non-state-owned firms and that the promotion effect of interaction on ambidextrous innovation investment eventually helps improve firm value.

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.