The signal effect of Government R&amp;D Subsidies in China: Does ownership matter?

Wu, Ai Hua

doi:10.1016/j.techfore.2016.08.033

Cited by 214 publications

(109 citation statements)

References 42 publications

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“…Thus, POEs may more effectively utilize government subsidies in case of market failure. Wu [17] confirmed that the same R&D subsidies promote more external investment in POEs than in SOEs. Wang et al [34] argued that strong formal political connections reduce firm-level R&D intensity.…”

Section: H2 Lagging Government Subsidies Have a Positive Impact On Rmentioning

confidence: 77%

“…Jiang et al [15] found that government subsidies had a significantly positive impact on R&D intensity of China's new energy vehicle enterprises. Other scholars [9,[16][17][18][19][20] also found that direct government funding stimulated private R&D investments. In other words, government subsidies can be viewed as an alternative funding source instead of a replacement for private R&D investment.…”

Section: Relationship Between Government Subsidies and Randd Investmentmentioning

confidence: 99%

“…It is argued that close political connections can facilitate access to external innovation resources for Chinese businesses [34]. Moreover, SOEs have more advantages than POEs in promoting regional economic development and increasing employment, so they attract more subsidies from local government [17]. Chinese SOEs receive more subsidies on average than privately controlled firms, because the government makes use of them to pursue sociopolitical objectives such as creating job opportunities and stabilizing local economies [35,36].…”

Section: H2 Lagging Government Subsidies Have a Positive Impact On Rmentioning

confidence: 99%

“…SOEs may provide some false information when applying for government subsidies. Due to the close relationship between SOEs and the government, government officials can help SOEs to conceal facts in some cases [17]. Different from SOEs, private enterprises pay more attention to innovative activities rather than political relations.…”

Section: H2 Lagging Government Subsidies Have a Positive Impact On Rmentioning

confidence: 99%

“…By drawing on current references [9,17,29,33,45], we consider the following as control variables: (1) size, given by the logarithm of assets; (2) debt, given by the ratio of total short-and long-term debt to total assets; (3) employee, given by the logarithm of number of employees; and (4) age, given by the logarithm of years the firm has been in existence from its founding up to a given time.…”

Section: Variablesmentioning

confidence: 99%

See 4 more Smart Citations

The Impact of Government Subsidies on Private R&D and Firm Performance: Does Ownership Matter in China’s Manufacturing Industry?

Jin

Shang

2018

Sustainability

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Government subsidies as a policy instrument are used to alleviate market failure in research and development (R&D) activities. We aim to understand the influence of government subsidies on enterprises' R&D investment and performance. We are also interested in examining how the attributes of enterprise ownership act as a moderating variable for the relationship between government subsidies, R&D investment, and firm performance. We use firm-level data on China's manufacturing listed companies from 2011 to 2015. The results show that receiving government subsidies improves private R&D investment and firm performance, and state-owned enterprises (SOEs) can obtain more subsidies than private-owned enterprises (POEs). However, the impact of government subsidies on private R&D investment is stronger in POEs than in SOEs of China. In additional analyses, we also examine this relationship by industry, region, subsidy intensity, and R&D intensity. This study has important policy implications for regulators to improve the effectiveness of government subsidies.

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Section: H2 Lagging Government Subsidies Have a Positive Impact On Rmentioning

confidence: 77%

Section: Relationship Between Government Subsidies and Randd Investmentmentioning

confidence: 99%

Section: H2 Lagging Government Subsidies Have a Positive Impact On Rmentioning

confidence: 99%

Section: H2 Lagging Government Subsidies Have a Positive Impact On Rmentioning

confidence: 99%

Section: Variablesmentioning

confidence: 99%

See 3 more Smart Citations

The Impact of Government Subsidies on Private R&D and Firm Performance: Does Ownership Matter in China’s Manufacturing Industry?

Jin

Shang

2018

Sustainability

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show abstract

Green signals: The impact of environmental protection support policies on firms' green innovation

Yang,

Song,

Liu

2023

Bus Strat Env

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The importance of government environmental financial incentives in stimulating firms' green innovation has long been recognized. However, researchers have yet to fully determine how a small amount of financial incentives can be used to promote expensive green innovation. Unlike prior studies based on the investigation of direct effects, this study provides a new perspective by employing signaling theory. Focusing on environmental protection support policy (EPSP) in China, it employs ordinary least squares (OLS) regression and generalized structural equation modeling (GSEM) to analyze a sample of panel data from China's A‐share listed companies from 2003 to 2020. The results suggest that EPSP funding can serve as a green signal that helps firms acquire external resources for green innovation. The results of this study enhance our understanding of the role that government financial incentives play in firms' green innovation and inform policymakers on how to formulate effective environmental policies.

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Can green innovation promote the financial performance of SMEs? Empirical evidence from China

Ji,

Zhou,

Wan

et al. 2023

Corp Soc Responsibility Env

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This paper contributes to the existing knowledge on the correlation between green innovation and financial performance among small and medium‐sized enterprises (SMEs). It examines the effects of two types of green innovation, specifically green product innovation and green process innovation, on the financial performance of SMEs. Additionally, it investigates the moderating role of economic support and predetermined targets, which are essential components of government subsidy programs, in relation to the aforementioned associations. Based on the panel dataset collected from Chinese manufacturing and energy industries covering the period of 2011–2021, the results show that (1) green product innovation may not positively impact the financial performance of SMEs; (2) green process innovation could enhance the financial performance of SMEs; (3) economic support may positively moderate the relationship between green process innovation and the financial performance of SMEs, while predetermined targets may negatively influence this relationship. These findings have considerable implications for practitioners, policymakers, and researchers in the industrial sector.

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The signal effect of Government R&D Subsidies in China: Does ownership matter?

Cited by 214 publications

References 42 publications

The Impact of Government Subsidies on Private R&D and Firm Performance: Does Ownership Matter in China’s Manufacturing Industry?

The Impact of Government Subsidies on Private R&D and Firm Performance: Does Ownership Matter in China’s Manufacturing Industry?

Green signals: The impact of environmental protection support policies on firms' green innovation

Can green innovation promote the financial performance of SMEs? Empirical evidence from China

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