IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04388100.html
   My bibliography  Save this paper

The impact of economic policy uncertainty on corporate innovation in China: the role of family ownership and political connections

Author

Listed:
  • Sultan Sikandar Mirza

    (University of Waikato [Hamilton])

  • Tanveer Ahsan

    (ESC [Rennes] - ESC Rennes School of Business)

  • Bakr Al-Gamrh

    (ESC [Rennes] - ESC Rennes School of Business)

  • Muhammad Ansar Majeed

    (ZJSU - Zhejiang Gongshang University [Hangzhou])

  • Fazal Muhammad

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

Economic policy uncertainty (EPU) may pose a risk or provide an opportunity for corporations. This study empirically investigates the impact of EPU on the corporate innovation of Chinese firms using patent information as a proxy for corporate innovation. The study then examines whether family ownership and political connections impede/boost corporate innovation. Using a longitudinal panel dataset of 3,085 Chinese firms listed during the period from 2009 to 2020, the study observes that EPU enhances corporate innovation in China. The study also finds that family firms negatively impact innovative projects during EPU. The study then shows that political connections positively moderate the effects of EPU on corporate innovation. The results of the study are robust to time and industry fixed effects, endogeneity issues, and firm-level time-varying factors.

Suggested Citation

  • Sultan Sikandar Mirza & Tanveer Ahsan & Bakr Al-Gamrh & Muhammad Ansar Majeed & Fazal Muhammad, 2023. "The impact of economic policy uncertainty on corporate innovation in China: the role of family ownership and political connections," Post-Print hal-04388100, HAL.
    • Handle: RePEc:hal:journl:hal-04388100
    DOI: 10.1080/00036846.2023.2291414
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Corporate innovation; family ownership; political connections; policy uncertainty; China; C23; G11; G30; G38;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    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:hal:journl:hal-04388100. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.