IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v45y2022ics1544612321002142.html
   My bibliography  Save this article

The impact of COVID-19 on firm innovation: Evidence from Chinese listed companies

Author

Listed:
  • Jin, Xin
  • Zhang, Min
  • Sun, Guanghua
  • Cui, Lixin

Abstract

This study examines the impact of COVID-19 on firm innovation using the data of Chinese listed companies from January 2020 to October 2020. The results show that at the national level, COVID-19 inhibits firm innovation in China. At the regional level, there are no differences in the impacts of COVID-19 on Hubei province and other regions. At the firm level, compared with non-state-owned enterprises (NSOEs), COVID-19 has a greater negative effect on the innovation quality of state-owned enterprises (SOEs). Innovation in large companies is more vulnerable to COVID-19 than in small and medium-sized enterprises (SMEs).

Suggested Citation

  • Jin, Xin & Zhang, Min & Sun, Guanghua & Cui, Lixin, 2022. "The impact of COVID-19 on firm innovation: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 45(C).
    • Handle: RePEc:eee:finlet:v:45:y:2022:i:c:s1544612321002142
    DOI: 10.1016/j.frl.2021.102133
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612321002142
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2021.102133?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dang, Jianwei & Motohashi, Kazuyuki, 2015. "Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality," China Economic Review, Elsevier, vol. 35(C), pages 137-155.
    2. Jing Cai & Yuyu Chen & Xuan Wang, 2018. "The Impact of Corporate Taxes on Firm Innovation: Evidence from the Corporate Tax Collection Reform in China," NBER Working Papers 25146, National Bureau of Economic Research, Inc.
    3. Fotouhi Ghazvini, Mohammad Ali & Faria, Pedro & Ramos, Sergio & Morais, Hugo & Vale, Zita, 2015. "Incentive-based demand response programs designed by asset-light retail electricity providers for the day-ahead market," Energy, Elsevier, vol. 82(C), pages 786-799.
    4. Wirsich, Alexander & Kock, Alexander & Strumann, Christoph & Schultz, Carsten, 2016. "Effects of University Industry Collaboration on Technological Newness," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 85098, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    5. Qing He & Junyi Liu & Sizhu Wang & Jishuang Yu, 2020. "The impact of COVID-19 on stock markets," Economic and Political Studies, Taylor & Francis Journals, vol. 8(3), pages 275-288, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. García-Suaza, A & Rodríguez-González, D & Sarango, A & Mayorga, J. D & Pretel, A & Husain-Talero, S & Zarama, L & Urbano, J. C., Girón, D., Medina, N, 2022. "Los impactos de la inclusión financiera en los micronegocios: factores que explican aumentos en los ingresos y crecimiento de los negocios," Documentos de Trabajo 20418, Universidad del Rosario.
    2. Chen, Dan & Tang, Yufei & Zhang, Yuan & Sun, Jingyu, 2024. "COVID-19, financing constraints, and performance of listed tourism companies: Evidence from China," Finance Research Letters, Elsevier, vol. 65(C).
    3. Zheng, Panpan & Li, Zhen & Zhuang, Ziyin, 2024. "The impact of COVID-19 on corporate digital innovation in China: A study based on the DDD model," Finance Research Letters, Elsevier, vol. 59(C).
    4. Iyer, Subramanian Rama & Simkins, Betty J., 2022. "COVID-19 and the Economy: Summary of research and future directions," Finance Research Letters, Elsevier, vol. 47(PB).
    5. Arshia Ishaq & Mamona Sadaf & Amjad Ali & Sehrish Naz, 2022. "Imagining the Growth in Small and Medium Enterprises (SMEs) of Pakistan under COVID19 Outbreak," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(4), pages 583-593, December.
    6. Fasano, Francesco & Javier Sánchez-Vidal, F. & La Rocca, Maurizio, 2022. "The role of government policies for Italian firms during the COVID-19 crisis," Finance Research Letters, Elsevier, vol. 50(C).
    7. Chiara Franco & Filomena Pietrovito, 2024. "Drivers of firms’ digital activities in response to the Covid-19 pandemic," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(3), pages 695-726, September.
    8. Lin, Xiaowei & Zhang, Qihao & Chen, Aihua & Zhang, Pengdong, 2022. "The Bright Side of Financial Constraint on Corporate Innovation: Evidence from the Chinese Bond Market," Finance Research Letters, Elsevier, vol. 49(C).
    9. Jiaxu Huang & Haiqing Hu & Yong Wang, 2022. "Fuzzy Front-End Vertical External Involvement, Corporate Social Responsibility and Firms’ New Product Development Performance in the VUCA Age: From an Organizational Learning Perspective," Sustainability, MDPI, vol. 15(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pan, Xia & Cheng, Wenyin & Gao, Yuning, 2022. "The impact of privatization of state-owned enterprises on innovation in China: A tale of privatization degree," Technovation, Elsevier, vol. 118(C).
    2. Xia Pan & Yuning Gao & Dong Guo & Wenyin Cheng, 2020. "Does Higher Education Promote Firm Innovation in China?," Sustainability, MDPI, vol. 12(18), pages 1-14, September.
    3. Luo, Lianfa & Cheng, Zhiming & Ye, Qingqing & Cheng, Yanjun & Smyth, Russell & Yang, Zhiqing & Zhang, Le, 2024. "Nonmonetary awards and innovation: Evidence from winning China's Top Brand Contest," China Economic Review, Elsevier, vol. 86(C).
    4. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    5. Prelorentzos, Arsenios-Georgios N. & Konstantakis, Konstantinos N. & Michaelides, Panayotis G. & Xidonas, Panos & Goutte, Stephane & Thomakos, Dimitrios D., 2024. "Introducing the GVAR-GARCH model: Evidence from financial markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    6. Qizhen Wang & Rong Wang & Suxia Liu, 2024. "The reverse technology spillover effect of outward foreign direct investment, energy efficiency and carbon emissions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17013-17035, July.
    7. Dai, Xiaoyong & Wang, Mengqi, 2024. "Unintended effects of tax incentives on firms’ strategic patenting," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 1-24.
    8. Clement Moyo & Izunna Anyikwa & Andrew Phiri, 2023. "The Impact of Covid-19 on Oil Market Returns: Has Market Efficiency Being Violated?," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 118-127, January.
    9. Deyun Yin & Kazuyuki Motohashi & Jianwei Dang, 2020. "Large-scale name disambiguation of Chinese patent inventors (1985–2016)," Scientometrics, Springer;Akadémiai Kiadó, vol. 122(2), pages 765-790, February.
    10. Xiaodong Yuan & Weiling Song, 2022. "Evaluating technology innovation capabilities of companies based on entropy- TOPSIS: the case of solar cell companies," Information Technology and Management, Springer, vol. 23(2), pages 65-76, June.
    11. Li, Xuelian & Lin, Panpan & Lin, Jyh-Horng, 2020. "COVID-19, insurer board utility, and capital regulation," Finance Research Letters, Elsevier, vol. 36(C).
    12. Pei Zhang & Peiran Chen & Fan Xiao & Yong Sun & Shuyan Ma & Ziwei Zhao, 2022. "The Impact of Information Infrastructure on Air Pollution: Empirical Evidence from China," IJERPH, MDPI, vol. 19(21), pages 1-17, November.
    13. Li, Xiaoying & Tan, Ying, 2020. "University R&D activities and firm innovations," Finance Research Letters, Elsevier, vol. 37(C).
    14. Wilman Gómez & Carlos Esteban Posada & Remberto Rhenals, 2018. "Determinants of Total Factor Productivity: The cases of the main Latin American and emerging economies of Asia (1960 - 2015)," Documentos de Trabajo de Valor Público 17203, Universidad EAFIT.
    15. Serdar Neslihanoglu, 2021. "Linearity extensions of the market model: a case of the top 10 cryptocurrency prices during the pre-COVID-19 and COVID-19 periods," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-27, December.
    16. Sun, Xiuli & Li, Haizheng & Ghosal, Vivek, 2020. "Firm-level human capital and innovation: Evidence from China," China Economic Review, Elsevier, vol. 59(C).
    17. Jiafeng Gu, 2021. "Effects of Patent Policy on Outputs and Commercialization of Academic Patents in China: A Spatial Difference-in-Differences Analysis," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    18. Xu Wang & Xiaobo Zhang & Zhuan Xie & Huang Yiping, 2016. "Roads to Innovation: Firm-Level Evidence from China," Working Papers id:11121, eSocialSciences.
    19. Katarzyna Czech & Michał Wielechowski & Pavel Kotyza & Irena Benešová & Adriana Laputková, 2020. "Shaking Stability: COVID-19 Impact on the Visegrad Group Countries’ Financial Markets," Sustainability, MDPI, vol. 12(15), pages 1-19, August.
    20. Solomon A. Olakojo & Abayomi T. Onanuga & Olaronke T. Onanuga, 2021. "COVID-19: Putting Stock Markets Back on Recovery Among the Crude Oil Producing Economies," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 15(1), February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:45:y:2022:i:c:s1544612321002142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.