The Impact of Business Environment on Innovation Performance in High-Tech Industries: Mediating Role of Debt Financing Costs and Modulating Role of Industrial Policy
DOI:
https://doi.org/10.62051/v9scaz03Keywords:
High-tech industrial policy; Innovation performance; Debt financing costs; Business environment; PSM-DID.Abstract
High-tech industries are pivotal engines for future technological progress and industrial innovation, playing a strategically important role in advancing China’s modernization. Using the 2010 Decision on Accelerating the Fostering and Development of Strategic Emerging Industries as a benchmark, this study examines the impact of high-tech industrial policies on corporate innovation performance and their underlying mechanisms. The analysis employs panel data from non-financial companies listed on the Shanghai and Shenzhen stock exchanges between 2007 and 2019, applying a Propensity Score Matching combined with Difference-in-Differences (PSM-DID) approach. The results indicate that high-tech industrial policies have a significant positive effect on corporate innovation performance. In terms of mechanisms, these policies enhance innovation performance primarily by reducing corporate debt financing costs. Moreover, a favorable business environment positively moderates the relationship between industrial policies and corporate innovation performance, and strengthens the effectiveness of such policies in lowering corporate debt financing costs.
Downloads
References
[1] Hu Huifang, Hu Di. Does High-Tech Industrial Policy Effectively Enhance Innovation Incentives? Empirical Evidence from Listed Companies in Fujian Province [J]. Fujian Forum (Humanities and Social Sciences Edition), 2021 (5): 58 - 66.
[2] PENEDERM. The problem of private under-investment in innovation: A policy mind map [J]. Tech novation, 2008, 28 (8): 518 - 530. DOI: https://doi.org/10.1016/j.technovation.2008.02.006
[3] Research Team on China's Urban Business Environment Evaluation, Li Zhijun, Zhang Shiguo, Niu Zhiwei, et al. Theoretical Logic, Comparative Analysis and Policy Recommendations for Evaluating China's Urban Business Environment [J]. Management World, 2021, 37 (5): 98 - 112.
[4] National Bureau of Statistics. China High-Tech Industry Statistical Yearbook 2017 [R]. Beijing, 2017.
[5] Gao Yang, Li Yunhai. External Financing and Innovation in High-Tech Industries: A Study from the Perspective of Spatial Spillover Effects [J]. China Science and Technology Forum, 2020 (11), 56 - 65.
[6] Zhu Lei, Sun Cheng, Wang Chunyan, et al. Analysis of the Impact of Major Shareholder Equity Pledges on Corporate Innovation Investment: Empirical Evidence from ChiNext Listed Companies [J]. Securities Market Herald, 2019 (2), pp. 26 - 34, 76.
[7] MARTINS, ALANH, KATYM, etal. Creating the competitive edge; A new relationship between operations management and industrial policy [J]. Journal of Operations Management, 2017 (1): 49 - 51. DOI: https://doi.org/10.1016/j.jom.2016.12.003
[8] LID. Financial constraints, R&D investment, and stock returns [J]. Review of Financial Studies, 2011, 24 (9): 2974 - 3007. DOI: https://doi.org/10.1093/rfs/hhr043
[9] Wang Zhenjie. Credit discrimination, debt financing costs and the scale of technological innovation investment[J]. Science and Technology Management, 2016, 37 (10): 9 - 17.
[10] Wang Xiaolu, Fan Gang, Hu Lipeng. Provincial Marketisation Index Report of China (2018) [M]. Beijing: Social Sciences Academic Press, 2019.
[11] Li Wenjing, Zheng Manni. Substantive Innovation or Strategic Innovation? — The Impact of Macro Industrial Policy on Micro-level Enterprise Innovation [J]. Economic Research Journal, 2016, 51 (4): 60 - 73.
[12] HECKMAN J. The common structure of statistical models of truncation, samples election and limited dependent variables [J]. Annals of Economic and Social Measurement, 1976 (5): 475 - 492.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Transactions on Economics, Business and Management Research
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
