Government Subsidy and Firms' R&D Investment : Evidence from Chinese Firms
- 주제(키워드) Government subsidy , R&D investment , Investment horizon , Long-term investors , Firm innovation
- 발행기관 SOGANG UNIVERSITY, GRADUATE SCHOOL OF INTERNATIONAL STUDIES
- 지도교수 Kim, Hyun-Dong
- 발행년도 2020
- 학위수여년월 2020. 2
- 학위명 석사
- 학과 및 전공 국제대학원 InternationalFinance
- UCI I804:11029-000000065174
- 본문언어 영어
- 저작권 서강대학교 논문은 저작권보호를 받습니다.
초록/요약
This paper examines the effect of government subsidy on firms’ R&D investment. Using a sample of Chinese firms over the 2003-2016 period, I find that government subsidy is positively related to firms’ R&D investment. Moreover, the presence of long-term investors strengthens the positive association between government subsidy and firms’ R&D expenditure. Overall, my results suggest that government subsidy can encourage firms to invest in their R&D activities by easing their financial burden for R&D investment. My findings further imply that long-term investors have strong incentives to monitor managers to increase their firms’ long-term value based on R&D investment.
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