Media environment, venture capital, and technological innovation: Evidence from China

Abstract

Informed by institutional embeddedness perspective, we examine how media environment as an informal institutional arrangement shapes technological innovation. Through an empirical examination of the panel data of 30 Chinese provinces from 2009 to 2019, we document a positive relationship between media environment and venture capital (VC). Our results also indicate VC positively affects technological innovation and media environment influences technological innovation through VC. Besides, we find subnational institutional development serves as a facilitator, while subnational state‐owned economy development is a burden, in influencing the positive linkage between VC and technological innovation. Finally, we provide valuable insights for technological innovation.

The Karmic Debt of Pollution Haven Hypothesis: Subnational Environmental Regulatory Pressure and Foreign Divestment from an Emerging Market

“…At the institutional level, we incorporate subnational effects that may disturb IJV stability from a risk perspective (Meschi and Riccio 2008). The quality of regional market development is a crucial factor in operating in emerging economies, such as China (Child and Tse 2001;Ma et al 2022). Thus, we include the provincial marketization indices developed by the National Economic Research Institute to control for regional institutional differences (Fan and Wang 2001).…”

The Effect of State Ownership on a Cross-Border Acquisition Wave

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