Policy and misallocation: Evidence from Chinese firm-level data

Chen, Guowen; Herrera, Ana María; Lugauer, Steven

doi:10.1016/j.euroecorev.2022.104260

Cited by 16 publications

(1 citation statement)

References 40 publications

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“…Therefore, they can effectively improve total factor productivity by easing financing constraints and stimulating R&D investment, thus enabling enterprises to develop through technological innovation rather than factor input [7]. However, opponents believe that due to the information asymmetry between the government and the market, the implementation of innovation-driven policies often suffers from policy misallocation [8], which reduces the R&D performance of enterprises and cannot really improve corporate performance. In addition, innovation-driven policies are only external incentives for R&D investment.…”

Section: Introductionmentioning

confidence: 99%

Innovation-Driven Policies, Corporate Governance Structure and Total Factor Productivity in Chinese Sports Sector: Evidence from Listed Sports Firms

2023

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The sports industry, an emerging industry with low pollution and low emissions, plays an important role in the sustainable development of human society. Using 489 observations from a panel of 128 sports firms listed on the New Third Board in China from 2015 to 2020, this study investigated the effects of three different innovation-driven policies on the total factor productivity of sports firms and the moderating role of governance structure on this relationship. The results showed that high-tech enterprise tax relief was an important policy tool to promote the total factor productivity of sports enterprises, but the direct effects of government subsidies and pre-tax deduction of R&D expenses were not significant. In addition, governance structure had a positive moderating effect on the relationship between innovation-driven policies and the total factor productivity of sports firms. The positive effect of the pre-tax deduction of R&D expenses policy was more significant for sports firms with larger and more independent boards of directors. This study provides new insight into innovation policy development for the sports industry by showing that corporate governance has a significant impact on the effectiveness of innovation-driven policies. Furthermore, the findings provide practical guidance for both managers and government–industry policymakers in the sports industry.

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Section: Introductionmentioning

confidence: 99%