Yunqing Tao , Qiaochu Wang , Jinqiang Yang , Yongwei Ye
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引用次数: 0
Abstract
This paper investigates whether strengthened creditor protection affects corporate R&D. Our identification strategy treats China's Internet judicial auction (IJA) as an exogenous shock to creditor protection and then adopts a staggered difference-in-differences (DID) estimation. The results show that IJA significantly increase corporate R&D. Mechanism analysis indicates that IJA increase loan availability of firms by lowering loan costs and improving loan scale, finally leading to an enhancement in R&D investment. In addition, this promotion effect is more pronounced among non-state-owned firms, firms in capital-intensive industries, and firms in highly competitive industries. Further analysis suggests that IJA can improve firms' patent output, productivity, and operational efficiency. Overall, our findings show that strengthening creditor protection through IJA can enhance corporate R&D investment.
期刊介绍：
The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.
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