In:
R&D Management, Wiley, Vol. 51, No. 5 ( 2021-11), p. 538-550
Abstract:
This study extends the extant literature on the direct outcome additionality of R & D subsidies by investigating whether R & D subsidies can have an indirect certification effect. Based on the panel data of Chinese listed firms, we argue that in emerging economies, such as China, obtaining R & D subsidies can serve as a quality signal of firms’ R & D projects to banks, thereby allowing firms to attract more bank loans. Specifically, 1% increase in R & D subsidies can increase firms’ access to bank loans by 0.06%. In addition, by using the lens of institutional contingency, we further examine the effect of institutional forces on the signal‐conveying mechanism of R & D subsidies. The results show that firm‐level state ownership weakens the positive signal effect of R & D subsidies, whereas region‐ and industry‐level institutional forces strengthen the positive signal effect. Our study has important implications for policy makers and firms.
Type of Medium:
Online Resource
ISSN:
0033-6807
,
1467-9310
Language:
English
Publisher:
Wiley
Publication Date:
2021
detail.hit.zdb_id:
2016955-3
detail.hit.zdb_id:
121562-0
SSG:
24
SSG:
3,2
