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Loose monetary policy and corporate NPD R&D innovation

Author

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  • Meng, Lingxing
  • Hou, Yufei
  • Dong, Tianyu
  • Su, Wen

Abstract

Based on the data of Chinese listed companies from 2006 to 2022, this paper shows that loose monetary policy will significantly promote enterprises' NPD innovation. At the same time, financial subsidies can strengthen this promoting effect. Nowadays, policy support is to alleviate the problem of insufficient innovation ability of enterprises from the perspective of external financing, it does not fundamentally solve the lack of innovation ability of enterprises, and has become the key problem of attention and research in academic circles. However, existing research pays less attention to the essence of improving NPD R&D innovation readiness, especially how to stimulate the innovation motivation of management is the lack of in-depth research to solve the fundamental problems of insufficient innovation investment and low innovation quality.

Suggested Citation

  • Meng, Lingxing & Hou, Yufei & Dong, Tianyu & Su, Wen, 2024. "Loose monetary policy and corporate NPD R&D innovation," International Review of Financial Analysis, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finana:v:92:y:2024:i:c:s1057521924000188
    DOI: 10.1016/j.irfa.2024.103086
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    References listed on IDEAS

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    5. Z. Jun Lin & Shengqiang Liu & Fangcheng Sun, 2017. "The Impact of Financing Constraints and Agency Costs on Corporate R&D Investment: Evidence from China," International Review of Finance, International Review of Finance Ltd., vol. 17(1), pages 3-42, March.
    6. Keen, Benjamin D. & Strong, Christine O., 2023. "Optimal fiscal and monetary policy in a model with government corruption," Finance Research Letters, Elsevier, vol. 58(PB).
    Full references (including those not matched with items on IDEAS)

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