This paper investigates the allocation of public subsidies and firms' research development (R&D) effort. Considering reality China, we focus on comparison between state owned enterprises (SOEs) non-state (SOEs). We apply a variety propensity score matching methods to large sample Chinese manufacturing firms. find strong evidence that is biased towards SOEs. Meanwhile, SOEs tend maintain higher levels R&D investment than matched non-SOEs. Though empirical results are consistent with existing...

This article empirically evaluates the impact of product innovation on firms' markup and productivity. Based a large sample Chinese manufacturing firms, we estimate firm-level using wedge between output elasticities intermediate input its cost share in total revenue. Firm productivity is measured as revenue adjusted with estimated markup. The results suggest that increases However, effect mostly negative or insignificant. observed relationships also vary response to market structures. Our...

Purpose The purpose of this paper is to facilitate understanding how mitigate the privacy concerns users who have experienced invasions. Design/methodology/approach Drawing on communication management theory, authors developed a model suggesting that form through cognitive process involving threat-coping appraisals, institutional assurances and experiences. was tested using data from an empirical survey with 913 randomly selected social media users. Findings Privacy are jointly determined by...

The explosion of research and development (R&D) expenditures in China brings a puzzling fact that the proportion R&D is extremely small, thus large. This article distinguishes from investigates heterogeneous effects two components on performance Chinese listed firms. Using generalized propensity score matching approach with continuous treatments, we present non-linear relationships between composition firm performance. While development-oriented firms benefit more an increase profit than...

This paper investigates the behavioral additionality effects of a unique high‐ and new‐ technology enterprise (HNTE) program in China. The provides reduced corporate income tax to certificated HNTEs. By distinguishing research expenses from development costs, we examine if incentive affects firms’ composition R&D investment, based on sample Chinese listed firms. results indicate that encourages firms focus more than research. are also found be heterogeneous among first‐time, repeated,...

Where venture capitalists have traditionally focused on early-stage innovative firms, increasingly are investing in late-stage especially Asia. The performance consequences of this novel phenomenon capital remain unexplored. This paper provides insight into by examining the impact two key dimensions firm literature: innovation and financial performance. We link VC investment events to indicators Chinese listed firms account for timing entry identify impacts. Utilizing a matching...

Integrating the theory of heterogeneous firm and trade with neo-Schumpeterian view, this paper examines whether learning-by-exporting processes in Chinese firms are technology specific. Using a combination propensity score matching difference-in-differences estimation, we find weak evidence that exports generate higher productivity growth for firms. This learning effect is subject to nature across industries: favor sectors characterized by high levels appropriability technological...

This article proposes a generalized productivity decomposition approach to evaluate the contribution of firm innovation aggregate growth (APG) China’s manufacturing industry. Results indicate that APG is mainly driven by firm-level improvements, while across-firm resource misallocations lead sizable losses. The weak found be caused within innovating firms. results suggest has not yet taken dominant driving force for APG.

This paper investigates the unintended effect of business-tax-to-VAT (B2V) reform in China on manufacturing firms' internal and external R&D behaviour. The B2V was implemented service sectors to replace business tax with value-added tax. It creates incentives for downstream firms increase outsourcing, as purchasing technology services becomes tax-deductible after reform. Using a large administrative firm-level dataset, we found that were previously more closely linked upstream are affected...

Purpose This paper investigates whether China's R&D tax deduction policy triggers firms to manipulate their expenditures upward. Design/methodology/approach employs the ratio of actual savings as a proxy for benefits based on manually collected and systematically cross-checked data. The relationship between abnormal spending is estimated in sample Chinese A-share listed companies period 2007–2018. Findings findings suggest that deductions lead positive this deviation may be attributed...

The tie-based non-market strategy has been widely adopted by new ventures to gain a competitive advantage in China. However, the recent anti-corruption campaign may have profound influences on business practices, particularly utilization or leveraging of managerial ties for improving firm performance. This study explored critically important but fairly underexplored research question whether continue create value under China's campaign. Based sample Chinese listed firms consisting ventures,...

Purpose The study examines how process/organizational innovation and R&D spending mediate the relationship between financial performance resource dependence theory in Fintech, providing insights into effective strategies for achieving sustainable performance. Design/methodology/approach Data from 191 firms Taiwan was collected annual reports using Economic Journal (TEJ), a information provider. Content analysis used to measure activities performance, with process organizational defined....