1. How does listing affect corporate innovation? Evidence from China's National Equities Exchange and Quotations market.
- Author
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Zhang, Acheng, Zeng, Jingjing, and Bi, Chao
- Subjects
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SMALL business , *INCENTIVE (Psychology) , *CORPORATE finance , *FOREIGN exchange market , *ECONOMIC expansion , *TECHNOLOGICAL innovations - Abstract
Technological innovation is an important determinant of economic growth, and the Chinese government is trying to create a favourable environment for corporations at both the regulatory and policy levels to improve the innovation level of firms. We use a difference-in-differences model to explore the impact of going public on innovation in small and medium-sized enterprises. A total of 5522 companies listed on the NEEQ from 2013 to 2017 are selected as samples in this study. The main conclusions are as follows: (1) Listing on NEEQ has a significant innovation incentive effect, and compared to unlisted enterprises, the incentive effect has the dynamic characteristics of continuous increase; (2) Further research finds that in the eastern region, where marketisation is higher, as well as the emerging industrial areas, the incentive effect of listing reached 0.4558 and 0.2691 million yuan, respectively, from the perspective of enterprise scale, and listing mainly stimulated the innovation of medium-sized enterprises; (3) Financing constraints and signal transmission partly mediate the relationship between listing and corporate innovation. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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