Credit Corruption, Financing Constraint and Corporate Innovation：Evidence from Firms in China
Read
DownLoad |
| Title | Credit Corruption, Financing Constraint and Corporate Innovation：Evidence from Firms in China
|
| Author | Zhang Xuan,Li Chuntao and Wang Ting |
| Organization | Zhongnan University of Economics and Law |
| Email | zhangx_amy858@163.com |
| Key Words | credit corruption；financing constraints；corporate innovation |
| Abstract | Credit corruption distorts the allocation of capital in financial markets, which would seriously affects the financial constraints through innovation behavior. Based on the Business Environment and Enterprise Performance Survey (BEEPS) of Chinese enterprises by World Bank in 2005，this research studies the effect of credit corruption and financial constraints on R & D investment decisions and strength in Chinese transit economy. The results shows that credit corruption and financial constraints significantly inhibit innovation; If companies have corruption action when obtaining credits, their financial constraints inhibition of innovation is more prominent. In addition, the sample is divided according to size, ownership structure and capital factor intensity of enterprises and the further research finds that credit constraints on corruption, strengthen financial innovation inhibition in the small and medium private enterprises and capital-intensive enterprises was particularly prominent. After taking into account endogeneity of credit corruption and financial constraints, the above conclusion still holds. Therefore, strengthen the system to prevent corruption credit is the key to solve the financing problems of innovation. |
| Serial Number | WP966 |
| Time | 2015-11-24 |
|