The Impact of Commercial Credit on Firm Innovation: Evidence from Chinese A-Share Listed Companies
Open Access
- 27 January 2022
- journal article
- research article
- Published by MDPI AG in Sustainability
- Vol. 14 (3), 1481
- https://doi.org/10.3390/su14031481
Abstract
This paper analyses the data on Chinese A-share listed companies from 1996 to 2019, using fixed-effect regression and the double-difference method to systematically examine the impact of commercial credit on enterprise technological innovation. The study found that the acquisition and provision of commercial credit has promoted the number of enterprise technological innovations and significantly improved their quality. In particular, the innovation of highly constrained companies is promoted by financing. Our findings help to solve the obstacles enterprises face in breaking through financing constraints and improving the efficiency and quality of their innovative efforts. The financing system has a significant influence on promoting the sustainable development of innovative enterprises.Funding Information
- Shandong University of Technology Ph.D. Startup Foundation (719017)
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