Political instability, access to private debt, and innovation investment in China

Douglas Cumming; Oliver Meng Rui; Yiping Wu

doi:10.1016/j.ememar.2016.08.013

Political instability, access to private debt, and innovation investment in China

Douglas Cumming (First Author), Oliver Meng Rui (Participant Author), Yiping Wu (Participant Author)

Finance

Research output: Contribution to journal › Journal

58 Citations (Web of Science)

Abstract

We provide evidence from China that access to loans positively affects the probability that a firm will invest in innovation. However, the positive effect of private debt on innovation investment is significantly moderated by political instability. The cost of political instability on innovation is less severe when the entrepreneur has political connections to party leaders. Furthermore, we show that political connections increase the probability that an entrepreneur has access to direct governmental support for innovation investment. These findings are more. pronounced for technology intensive industries.

Original language	English
Pages (from-to)	68-81
Journal	Emerging Markets Review
Volume	29
DOIs	https://doi.org/10.1016/j.ememar.2016.08.013
Publication status	Published - 2016

Corresponding author email

wu.yiping@shufe.edu.cn

Project name

国家自然基金：企业创新的财政激励机制扭曲：形成机制、经济后果与改革策略;;其他：Social Sciences and Humanities Research Council of Canada

Project sponsor

其他

Project No.

企业创新的财政激励机制扭曲：形成机制、经济后果与改革策略：71673174;;Social Sciences and Humanities Research Council of Canada：435-2012-1725

Keywords

CONNECTED FIRMS
China
ECONOMETRIC EVALUATION ESTIMATOR
Innovation
MARKET
PERFORMANCE
PROPERTY-RIGHTS
Political instability
Private debt
TRANSITION
TURNOVER

Indexed by

ABDC-A
Scopus
SSCI

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.ememar.2016.08.013Licence: CC BY-NC-ND

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Political instability, access to private debt, and innovation investment in China

Abstract

Corresponding author email

Project name

Project sponsor

Project No.

Keywords

Indexed by

UN SDGs

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