Impacts of credit constraints on innovation propensity and innovation performance: evidence from China and India

Zhang, Dengjun

doi:10.1080/16081625.2021.1872033

Cited by 8 publications

(13 citation statements)

References 61 publications

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“…According to the report of the World Bank (Claessens and Tzioumis, 2006), about 75% of Chinese listed companies have financial constraints of varying degrees. Financial constraints are among the important factors restricting enterprise innovation at the present stage, which is also consistent with the research conclusions of Zhang and Jin (2021), Zhang (2021), Yin et al. (2019), Li et al.…”

Section: Further Discussionsupporting

confidence: 88%

Research on the impact of digital finance on the innovation performance of enterprises

Jiang

Zhu

2022

EJIM

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PurposeThe purposes of this paper are to analyze whether digital finance can contribute to enterprises' innovation performance and to determine the mediating effect of government subsidies.Design/methodology/approachThis paper empirically examines the impacts of digital finance on enterprises' innovation performance by looking at Chinese companies listed on the SME and GEM boards from 2011 to 2018 to build an econometric model to test our hypotheses. The mediating effect of government subsidies, the moderating effect of financial constraints are examined, as well as shareholding of the largest shareholders in each selected company and the asset-liability ratio.FindingsThe results show that digital finance has a significant promotional effect on firms' innovation performance and that government subsidies play a partial mediating role in digital finance's contribution to firms' innovation performance. In addition, financial constraints and the shareholding of the largest shareholders in each selected company have a negative moderating effect on the relationship between government subsidies and firms' innovation performance. On the contrary, the asset-liability ratio is found to positively affect the relationship.Originality/valueThere has been limited research to date on the relationship between digital finance and firms' innovation performance, particularly with regard to the extent to which digital finance can influence innovation performance and the mechanisms for doing so. Therefore, it is of great significance to examine the relationship between digital finance and enterprises' innovation performance, which can also provide guidance for both the Chinese government and enterprises.

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Section: Further Discussionsupporting

confidence: 88%

Research on the impact of digital finance on the innovation performance of enterprises

Jiang

Zhu

2022

EJIM

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“…Therefore, there is a greater likelihood of firms encountering financing difficulties in terms of investment into research and development [ 55 , 56 ]. There is also empirical evidence that financing constraints have impeded research and development investment by firms [ 57 , 58 ]. As digital inclusive finance may be effective for alleviating financing constraints, this study argues that digital inclusive finance can support the research and development (R&D) investment of agricultural enterprises and thereby increases operating income.…”

Section: Literature Review and Hypotheses’ Developmentmentioning

confidence: 99%

Enhancing Food Security through Digital Inclusive Finance: Evidence from Agricultural Enterprises in China

Huang

Azman

2023

IJERPH

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As a means of enhancing food security, efficient agricultural processing and the maintenance of a smooth supply chain are essential for ensuring food quality and reducing food wastage. Agricultural enterprises play a crucial role in the processing and transportation of food from farms to dinner tables. Operating income growth plays the vital role of ensuring that agricultural enterprises function in a stable manner while also indicating the quantity and quality of market food supply. Therefore, the objective of this study is to explore the impact of digital inclusive finance on food security by analyzing the effect of digital inclusive finance on the operating income of agricultural enterprises in China. By applying pooled OLS analysis to Chinese agricultural enterprises that are listed in the National Equities Exchange and Quotations, this study finds that digital inclusive finance can help improve agricultural operating income. The results reveal that digital inclusive finance can facilitate the promotion of agricultural operating income by increasing the supply of financing, accelerating inventory liquidity, and supporting investment in research and development. In addition, this study concludes that digital inclusive finance is more effective for increasing agricultural operating income as a result of its wider coverage and deeper utilization. Furthermore, the development of traditional finance is still necessary for the digitization of digital inclusive finance to be effective.

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“…Researchers further confirm that financial leverage is one of the factors affecting the likelihood of either credit constraints or demand for credit ( Nguyen et al, 2019 ). Credit constraints further affect cost of capital ( Rand, 2007 ), innovations ( Gorodnichenko and Schnitzer, 2013 , Zhang, 2021 ), exports ( Jinjarak and Wignaraja, 2016 ), capacity utilization and labor productivity ( Zhang, 2020 , Rodríguez-Pose et al, 2021 ), and environmental practices ( Tian and Lin, 2019 , Zhang and Xie, 2020 ). As such, the testable hypothesis is that firms constrained by access to credit are more severely affected by the COVID-19 pandemic.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The empirical results may be subject to the measure of credit constraints ( Hansen and Rand, 2014 ). In the literature, researchers have distinguished credit-constrained firms from their counterparts according to loan applications and their outcomes ( Bigsten et al, 2003 , Zhang, 2020 , Zhang, 2021 ). Firms are treated as being constrained by access to external finance if they (1) applied for a line of credit or loans in the recent fiscal year and the application was rejected, or (2) did not apply for a loan for the reasons of ‘application procedures were complex’, ‘collateral requirements were too high’, or ‘size of loan and maturity were insufficient’.…”

Section: Data Variables and Modelmentioning

confidence: 99%

Credit constraints and the severity of COVID-19 impact: Empirical evidence from enterprise surveys

Zhang

Sogn‐Grundvåg

2022

Economic Analysis and Policy

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Impacts of credit constraints on innovation propensity and innovation performance: evidence from China and India

Cited by 8 publications

References 61 publications

Research on the impact of digital finance on the innovation performance of enterprises

Research on the impact of digital finance on the innovation performance of enterprises

Enhancing Food Security through Digital Inclusive Finance: Evidence from Agricultural Enterprises in China

Credit constraints and the severity of COVID-19 impact: Empirical evidence from enterprise surveys

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