The effects of bank competition on firm R&amp;D investment: an inverted-U relationship

Xia, Yu-feng; Liu, Peisen

doi:10.1108/cms-04-2020-0126

Cited by 8 publications

(7 citation statements)

References 78 publications

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“…In contrast to Xia and Liu [ 20 ], who have identified an inverted-U relationship between bank competition and corporate R&D investments, our study reveals a U-shaped relationship between bank market structure and firm innovation output. Unlike Liu and Li [ 18 ], who mainly concentrate on the linear relationship between bank competition and firm innovation output, our research centers on exploring the non-linear relation between bank market structure and firm innovation output.…”

Section: Resultscontrasting

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: Resultscontrasting

confidence: 99%

“…Liu and Li [ 18 ] indicate that bank competition has a positive effect on firm innovation. Xia and Liu [ 20 ] demonstrate an inverted-U relationship between bank competition and R&D investment. Huang et al [ 35 ] point out that bank competition promotes the regional innovation in China.…”

Section: Literature Reviewmentioning

confidence: 99%

Bank market structure and firm innovation-evidence from China

Shang,

Liu,

Xing

2024

PLoS ONE

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“…Second, maintaining a positive relationship quality with core stakeholders such as society, meeting their needs, and solving social problems, such as employment, entrepreneurship, and pension are conducive to market and social integration (Barba-Sánchez et al, 2021). Although some 10.3389/fpsyg.2022.942294 studies have explored innovation-driven corporate value from the perspective of profitability (Jin et al, 2016;Xia and Liu, 2021), they have ignored the dynamics of corporate social goal orientation behaviors at the micro-level and how stakeholder relationships promote its development. Therefore, in this article, we focuses on the driving factors of corporate social goal orientation and attempts to analyze the interaction between informal institutions and social goal orientation at the micro-level (Ionescu, 2021).…”

Section: Discussionmentioning

confidence: 99%

Stakeholder relationships and corporate social goal orientation: Implications for entrepreneurial psychology

Sheng

Xiao

et al. 2022

Front. Psychol.

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As the sensitivity to corporate social responsibility (CSR) continues to grow, the goal of enterprises has expanded beyond the sole pursuit of economic value. Corporate social goal orientation has therefore come to occupy a central position in entrepreneurs’ psychology and the transition away from a market-only economy. This study uses secondary data from 4,288 samples of 725 Chinese-listed companies from 2009 to 2020 to explore the driving factors in social goal orientation based on the characteristics of sample companies and their industry groups from the perspective of stakeholder relationships. The results can be summarized as follows: (1) there is an inverted U-shaped relationship between government stakeholder relationships and social goal orientation, and there is a significant positive relationship between financial stakeholder relationships, market stakeholder relationships, and corporate social goal orientation. (2) The correlation between single-dual stakeholder relationships and social goal orientation is not consistent. In light of the nature of the roles of government and the market, the correlation between the government–market dual relationship and corporate social goal orientation is not significant. However, there is a significant correlation between the finance–government dual stakeholder relationship and social goal orientation; that is, the dual stakeholder relationship maintains the existence of non-institutional capital and corporate financial capital. Moreover, there is no significant correlation between the market–finance dual relationship and corporate social goal orientation, and there is substitutability between market and financial stakeholder relationships. With the deepening of our understanding of CSR, the core goal of enterprises is no longer confined to the pursuit of economic value, and their social goal orientation has come to be regarded as a major driving force in sustainable development. This study enriches the research on the relationship between stakeholder relationships and shows that stakeholder relationships also have important significance to both achieving corporate goals and shaping entrepreneurs’ psychology.

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“…From the angle of information asymmetry, China's capital market does not have a mature mechanism. e current laws cannot effectively protect intellectual property rights [19]. If financing constraints are serious, Chinese enterprises would hold a wait-and-see attitude towards R&D investment [20].…”

Section: Financing Constraints and Randd Investmentmentioning

confidence: 99%

Analysis on the Relationship between Financing Constraints and Research and Development from the Perspective of the Location of Top Management Network

2022

Discrete Dynamics in Nature and Society

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Taking listed Chinese companies during 2009–2019 as objects, this paper constructs a multivariate discriminant model to measure the degrees of multiple financing constraints and establishes empirical models to analyze the non-linear relationship between the financing constraints and research and development (R&D) investment. Further, the author investigated how the top management network (TMN) location acts on the relationship between financing constraints and R&D investment. The research provides a robust evidence to an inverted U-shaped relationship between the degrees of financing constraints and corporate R&D investment: appropriate financing constraints promote corporate R&D investment; once passing a turning point, excess financing constraints would suppress corporate R&D investment. Besides, it was learned that TMN location positively moderates the financing constraints and R&D investment. In addition, TMN location plays a more obvious regulating role in non-state-owned enterprises (non-SOEs) than in SOEs. The research clarifies the relationship between financing constraints and R&D investment, as well as the moderating role of TMN location. Empirical evidence was provided to help the government reduce credit discrimination and enterprises to widen financing channels and improve innovation capability.

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The effects of bank competition on firm R&D investment: an inverted-U relationship

Cited by 8 publications

References 78 publications

Bank market structure and firm innovation-evidence from China

Bank market structure and firm innovation-evidence from China

Stakeholder relationships and corporate social goal orientation: Implications for entrepreneurial psychology

Analysis on the Relationship between Financing Constraints and Research and Development from the Perspective of the Location of Top Management Network

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