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Do government subsidies and financing constraints play a dominant role in the effect of state ownership on corporate innovation? Evidence from China

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  • Qi‐an Chen
  • Shuxiang Tang
  • Yuan Xu

Abstract

We construct a chain multiple mediation model to examine how state ownership affects corporate innovation through government subsidies and financing constraints. The results are as follows. First, the effect of state ownership on corporate innovation varies by share. Second, government subsidies and financing constraints act as chain multiple mediators between state ownership and corporate innovation; however, their mediating effects vary across shares of state ownership. Third, the direct effect of state ownership in different shares on corporate innovation is significantly stronger than the chain multiple mediating effects of government subsidies and financing constraints.

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  • Qi‐an Chen & Shuxiang Tang & Yuan Xu, 2022. "Do government subsidies and financing constraints play a dominant role in the effect of state ownership on corporate innovation? Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3698-3714, December.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:8:p:3698-3714
    DOI: 10.1002/mde.3623
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    2. Changchun Zhu & Na Li & Jing Ma, 2023. "Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2885-2905, November.

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