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Firms’ Technology Innovation Activity: Does Financial Structure Matter?

  • Muhammad Kaleem Khan*
  • , Ying He
  • , Umair Akram
  • , Salman Zulfiqar
  • , Muhammad Usman
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

24 Scopus citations

Abstract

In this paper we estimate the extent to which financial structure influences technology innovation activity (TIA) in China. Based on a variety of specifications and by employing panel data estimation techniques, we find that a capital-market-based financial structure supports TIA more efficiently than a bank-bases financial structure does. Chinese firms in high-tech industry are getting privilege from overwhelming financial development in China to enhance their TIA. Private firms in particular are becoming more and more active in TIA by taking advantage of China's developing capital market, whereas state-owned enterprises are advancing in technological innovation owing to continuous financial support from the state-owned credit market.

Original languageEnglish
Pages (from-to)329-353
Number of pages25
JournalAsia-Pacific Journal of Financial Studies
Volume47
Issue number2
DOIs
StatePublished - Apr 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2018 Korean Securities Association

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure

Keywords

  • China
  • Financial development
  • Financial structure
  • R&D
  • Technology innovation activity

ASJC Scopus subject areas

  • Finance

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