Firms' Technology Innovation Activity: Does Financial Structure Matter?1. (19th April 2018)

• Record Type: Journal Article
• Authors: Khan, Muhammad Kaleem; He, Ying; Akram, Umair; Zulfiqar, Salman; Usman, Muhammad
• Other Names: Tian Xuan guestEditor.
• Is Part Of: Asia-Pacific journal of financial studies. Volume 47:Number 2(2018:Apr.)
• Page Start: 329
• Page End: 353
• Publication Date: 2018-04-19
• Subjects: Technology innovation activity -- R&D -- Financial structure -- Financial development -- China; Pacific Area -- Economic conditions -- Periodicals; Finance -- Asia -- Periodicals; Finance -- Pacific Area -- Periodicals; Asia -- Economic conditions -- Periodicals; 332.09505
• DOI: 10.1111/ajfs.12213
• Languages: English
• ISSNs: 2041-9945

Abstract

Abstract: In this paper we estimate the extent to which financial structure influences technology innovation activity (TIA) in China. Based on a variety of specifications and by employing panel data estimation techniques, we find that a capital‐market‐based financial structure supports TIA more efficiently than a bank‐bases financial structure does. Chinese firms in high‐tech industry are getting privilege from overwhelming financial development in China to enhance their TIA. Private firms in particular are becoming more and more active in TIA by taking advantage of China's developing capital market, whereas state‐owned enterprises are advancing in technological innovation owing to continuous financial support from the state‐owned credit market.