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The Effects of Financing Channels on Enterprise Innovation and Life Cycle in Chinese A-Share Listed Companies: An Empirical Analysis

Author

Listed:
  • Shixian Ling

    (Business School, Shandong University, Weihai 264209, China)

  • Guosheng Han

    (Business School, Shandong University, Weihai 264209, China)

  • Dong An

    (College of Business Administration, Hebei Agricultural University, Baoding 071001, China)

  • Armigon Akhmedov

    (Department of Hotel Management, Graduate School, Kyung Hee University, Seoul 02447, Korea)

  • Hui Wang

    (College of Business Administration, Hebei Agricultural University, Baoding 071001, China)

  • Hui Li

    (School of Economics and Management, Harbin Institute of Technology, Weihai 264209, China)

  • William Cannon Hunter

    (Department of Convention Management, College of Hotel & Tourism Management, Kyung Hee University, Seoul 02447, Korea)

Abstract

This paper offers an empirical analysis of the effects of financing channels on innovation and the regulatory effect of the enterprise life cycle based on data published from 2008 to 2017 on publicly traded companies in China. The results show that government subsidies, tax preferences, self-owned funds, and equity financing have significant positive incentives for enterprise innovation, and the incentive intensity is gradually weakened while bank loans will hinder enterprise innovation. The impacts of various financing channels on enterprise innovation vary with the different stages of the enterprise life cycle, and the overall performance is weakened with the advancement of the life cycle. According to the grouping research of property rights, it is found that the impacts of various financing channels on the innovation of non-state-owned enterprises are more significant than those of state-owned enterprises. Further research finds that the influence of each financing channel on enterprise innovation is U-shaped or inverted U-shaped, indicating that there is a moderate range of each financing channel. This study is of great significance to fully understand the impacts of various financing channels on enterprise innovation and the regulatory role of the enterprise life cycle and to optimize the allocation of innovation resources.

Suggested Citation

  • Shixian Ling & Guosheng Han & Dong An & Armigon Akhmedov & Hui Wang & Hui Li & William Cannon Hunter, 2020. "The Effects of Financing Channels on Enterprise Innovation and Life Cycle in Chinese A-Share Listed Companies: An Empirical Analysis," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:6704-:d:400931
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    References listed on IDEAS

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    3. Zhang, Xiekui & Gong, Dayong & Huang, Yihan & Li, Yiting, 2024. "The Government's fiscal and taxation policy effect on enterprise productivity: Policy choice and optimal allocation," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 28-41.
    4. Wei Yu & Huiqin Huang & Keying Zhu, 2023. "Enhancing Construction Enterprise Financial Performance through Digital Inclusive Finance: An Insight into Supply Chain Finance," Sustainability, MDPI, vol. 15(13), pages 1-16, June.

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