Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches

Xia, Yu-feng; Liu, Peisen

doi:10.1111/cwe.12411

Cited by 28 publications

(13 citation statements)

References 72 publications

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“…Xin et al [ 19 ] find that bank deregulation on city commercial banks in China has significantly positive effect on firm innovation. Additionally, Xia and Liu [ 36 ] explore the impact of bank competition on firm green innovation in China. Tan et al [ 37 ] illustrate that a combination of industry and finance serves as a moderating factor in the relationship between bank competition and enterprise innovation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Following the literature [ 36 , 44 ], we control for firms’ size ( Size ), age ( lage ), return on assets ( ROA ), firms’ leverage ( leverage ) and whether a firm is an export firm ( export ). To mitigate the omitted variable bias, we also control the GDP per capita ( lgdppc ), bank density ( Bankdens ), the government expenditure on science and technology ( lnSTexp ), and the employee wages ( lnWage ) in a city.…”

Section: Sample Measures and Summary Statisticsmentioning

confidence: 99%

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Bank market structure and firm innovation-evidence from China

Shang,

Liu,

Xing

2024

PLoS ONE

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This study explores the impact of bank market structure on firm innovation in China using a two-way fixed effects model. Our analysis is based on a dataset comprising 2,412,316 firm-city level observations. Our findings suggest that there exists a U-shaped relationship between bank market structure and firm innovation in China. Specifically, we identify that the financing channel is a crucial pathway through which bank market structure influences firm innovation. Moreover, our results indicate that this relationship is mainly driven by small firms and innovative firms, and is more pronounced in regions with stronger intellectual property rights protection or greater openness to foreign markets. In sum, this study contributes to the existing literature by advancing our understanding of the impact of bank market structure on innovation in Chinese firms.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Sample Measures and Summary Statisticsmentioning

confidence: 99%

Bank market structure and firm innovation-evidence from China

Shang,

Liu,

Xing

2024

PLoS ONE

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“…This section analyzes how a policy can encourage enterprises to increase their R&D investment. Cost is an important factor influencing corporate innovation (Xia and Liu, 2022). Super-deductions of R&D expenses inevitably reduce the cost of R&D investment and increase net cash flow.…”

Section: Mechanism Analysismentioning

confidence: 99%

Can the Super‐deduction of R&D Expenses Boost R&D Investment?

Qian,

Zhan,

Pan

2023

China and World Economy

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The super‐deduction of research and development (R&D) expenses is at the core of the policy to stimulate enterprise innovation in China. This paper identifies whether firms are supported by the super‐deduction policies for R&D expenses and uses the difference‐in‐differences method to investigate the impact of the policies on R&D investment. The results show that changes in policy in 2013 significantly increased the R&D investment of firms engaging in key state‐supported technologies. Policy changes in 2016 significantly increased the R&D investment of firms engaging in non‐key‐state‐supported technologies. Enterprises not only invested all their tax incentives in R&D activities but also increased their investment in self‐raised funds. The super‐deduction policy had different impacts on different industries, firms with different boards, and firms with different ownership. The policy significantly affected the manufacturing and construction industries, the Small and Medium Enterprise Board, and non‐state‐owned enterprises. Through a mechanism analysis, we found that the policy significantly reduced the user cost of R&D and increased the net cash flow of enterprises, which could raise a firm's R&D investment. It is necessary to increase policy support, expand the scope of super‐deductible expenses, and increase the super‐deduction rate based on industry classification according to the sensitivity of different industries to the policy.

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“…Banks can also reduce loan interest rates and relax loan conditions, effectively easing financing constraints (Beck & Demirguc-Kunt, 2006). Xia and Liu (2022) showed that the competitive bank environment faced by enterprises based on geographical distance can promote green innovation.…”

Section: Access To Credit and Green Innovationmentioning

confidence: 99%

Access to Credit and Green Innovation

Bai

Lin

2022

Journal of Global Information Management

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Starting with the natural credit relationship between financial institutions and enterprises, this paper examines the relationship between distance-based access to credit and green innovation by using the data of financial licenses and listed enterprises. Based on the resource dependence theory, the authors use the geographical location of bank branches and enterprises to build micro-level credit access indicators. It shows that enterprises with better access to credit have more motivation to carry out green innovation. Taking the number of branches of the Bank of China in 1937 as an instrumental variable, it still supports the above results. Its influence lies in the reduction of financing constraints of enterprises. This paper further discusses the impact of green finance and digitization. The development of green finance and digitization could replace the benefits of distance-based access to credit. Combined with the transformation process of traditional banks in the future, this paper puts forward some policy suggestions to promote green innovation and low-carbon development.

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Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches

Cited by 28 publications

References 72 publications

Bank market structure and firm innovation-evidence from China

Bank market structure and firm innovation-evidence from China

Can the Super‐deduction of R&D Expenses Boost R&D Investment?

Access to Credit and Green Innovation

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