Political connections, corporate innovation and entrepreneurship: Evidence from the China Employer-Employee Survey (CEES)

Cheng, Lei; Cheng, Hong; Zhuang, Ziyin

doi:10.1016/j.chieco.2018.12.002

Cited by 50 publications

(32 citation statements)

References 42 publications

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“…However, the picking-the-winner strategy with a large subsidy amount might cause unfair competition. Another influential target is the political connection bias in the information-asymmetry context [ 2 , 4 , 5 ]. This strategy might cause corruption, and thus lead to the under-efficiency of subsidies [ 4 , 6 ].…”

Section: Introductionmentioning

confidence: 99%

Financial constraints, government subsidies, and corporate innovation

Wang

Cao

et al. 2021

PLoS ONE

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To investigate the relationships between financial constraints, government subsidies, and corporate innovation, a semi-logarithmic fixed-effect panel model and mediation effect test were applied, based on the data of Chinese listed companies from 2007 to 2017. We find that (1) financial constraints suppress corporate innovation. (2) Government subsidies are targeted at bailing out firms facing financial constraints. (3) Government subsidies promote corporate innovation (4) Government subsidies partially offset the suppression of financial constraints on innovation. We contribute to the fields of public finance, corporate finance, and corporate innovation by: (1) justifying the government subsidies target strategy as a bailout of corporate financial constraints, (2) verifying the corporate-innovation promotion of government subsidies, thus justifying the efficiency of government subsidies, and (3) showing that different types of innovation benefit differently from subsidies, thus justifying subsidies as a structural innovation engine.

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Section: Introductionmentioning

confidence: 99%

Financial constraints, government subsidies, and corporate innovation

Wang

Cao

et al. 2021

PLoS ONE

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“…It also affects the execution of environmental regulations. On the one hand, private enterprises and weak technology companies have enhanced their innovation capabilities via political connections [ 50 ]. CEO’s support for environmental protection policies also helps promote corporate green technology innovation [ 51 ].…”

Section: Further Discussionmentioning

confidence: 99%

Environmental regulation, environmental responsibility, and green technology innovation: Empirical research from China

Wang

Yang

et al. 2021

PLoS ONE

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Innovation and green are the directions to promote the circular economy and environmental sustainability at the corporate level. This paper examines the impact of environmental regulation (pollution charge) on green technology innovation and the mediating role of corporate environmental responsibility. Our results indicate that: (1) Environmental regulations stimulate manufacturing enterprises’ environmental responsibility and green technology innovation. It is worth noting that corporate environmental responsibility strengthens the relationship between environmental regulation and green technology innovation. (2) Further investigation reveals that R&D expenditure and environmental investment have greatly strengthened the positive effect of environmental regulation on green technology innovation. (3) With more detailed disclosure about enterprises’ environment-related information, the more outstanding stimulation effects of environmental regulation. Discussions on the features of enterprise location have revealed that, if the goal of environmental protection is set too high or if the fiscal decentralization is too strong, implementation of environmental regulation would not achieve desirable results. Accordingly, we need to optimize the collection of environmental taxes, strengthen the enterprises’ environmental responsibility, and increase investment in R&D and environment protection. Meanwhile, the execution of environmental regulation should also take into account the institutional environment and governance features of the enterprise locations.

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“…Bronzini and Piselli found that innovation subsidy could significantly improve the probability of patent application of small enterprises [35]. Cheng et al carried out research from the perspective of political connection and believed that political connection helps enterprises to obtain tax incentives and government subsidies [36]. Basit et al studied innovation subsidy in service industry and found that enterprises can significantly improve their performance through marketing innovation [37].…”

Section: Innovation Subsidymentioning

confidence: 99%

Substantive Innovation or Strategic Innovation? Research on Multiplayer Stochastic Evolutionary Game Model and Simulation

Ren

Zhang

et al. 2020

Complexity

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Innovation subsidy is of great significance to promoting enterprise innovation development. However, in recent years, the frequent occurrence of R&D subsidy deception in China has greatly reduced effectiveness of innovation. From the perspective of the strategic choice motivation of the innovation subject (including the enterprises, research institutions, and local governments), this paper constructs a multiplayer stochastic evolutionary game model. The influence of each variable on the subject strategy adoption is analyzed by simulation. There are two important findings in this paper. First, the paper confirms that there is an optimal boundary for the high subsidies received by enterprises and academic institutions, and the “subsidy boundary” is solved through the model. Second, this paper analyzes the effectiveness of the regulation of each variable through simulation and provides management and policy implications.

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Political connections, corporate innovation and entrepreneurship: Evidence from the China Employer-Employee Survey (CEES)

Cited by 50 publications

References 42 publications

Financial constraints, government subsidies, and corporate innovation

Financial constraints, government subsidies, and corporate innovation

Environmental regulation, environmental responsibility, and green technology innovation: Empirical research from China

Substantive Innovation or Strategic Innovation? Research on Multiplayer Stochastic Evolutionary Game Model and Simulation

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