IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v26y2019i6p747-766.html
   My bibliography  Save this article

Intellectual property protection and creative enterprises’ investment efficiency: alleviating financing constraints or inhibiting agency problem?

Author

Listed:
  • Shaner Chu
  • Changchun Gao

Abstract

This study investigates the influence of regional intellectual property protection (IPP) on creative enterprises’ investment efficiency in China, and its influencing mechanism is also explored. For this purpose, we employ provincial level data of IPP along with micro financial data from 214 Chinese listed creative enterprises between 2007 and 2015. Consistent with our assumptions, we find strong and robust evidence that IPP has a significant and negative correlation with the investment inefficiency of creative enterprises especially those with private ownership. We also employ investment-cash flow sensitivity by using modified Tobin-Q model to examine the concrete mechanism of IPP, and the results show that IPP impacts creative enterprises’ investment efficiency advantageously by relaxing financing constraints rather than inhibiting agency issue. Taken together, this paper contributes that IPP can help alleviate private creative enterprises’ financing problem, which in turn improves the firms’ investment efficiency.

Suggested Citation

  • Shaner Chu & Changchun Gao, 2019. "Intellectual property protection and creative enterprises’ investment efficiency: alleviating financing constraints or inhibiting agency problem?," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 26(6), pages 747-766, November.
  • Handle: RePEc:taf:raaexx:v:26:y:2019:i:6:p:747-766
    DOI: 10.1080/16081625.2019.1566010
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2019.1566010
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/16081625.2019.1566010?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.

    Citations

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


    Cited by:

    1. Wen, Jinglei & Deng, Yujiao, 2023. "How does intellectual property protection contribute to the digital transformation of enterprises?," Finance Research Letters, Elsevier, vol. 58(PA).

    More about this item

    Statistics

    Access and download statistics

    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:taf:raaexx:v:26:y:2019:i:6:p:747-766. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    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.