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Does private equity investment influence enterprise innovation strategy?

Author

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  • Liang, Wuchao
  • Wang, Ying
  • Hou, Li

Abstract

This paper takes China's GEM IPOs from 2017 to 2022 as the research object to explore the relationship between private equity investment and enterprise innovation strategy. It is found that private equity investment can effectively promote enterprise innovation and has a more significant impact on substantive innovation; PE joint investment enhances the supportive role of enterprise innovation relative to separate investment; there is no significant difference between whether private equity investment has a state-owned background or not in promoting enterprise innovation.

Suggested Citation

  • Liang, Wuchao & Wang, Ying & Hou, Li, 2023. "Does private equity investment influence enterprise innovation strategy?," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009650
    DOI: 10.1016/j.frl.2023.104593
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    2. Che, Jiayi & Chen, Jinsong, 2024. "Empirical study on marketing investment and business innovation—A case analysis based on small and medium enterprises," Finance Research Letters, Elsevier, vol. 69(PB).
    3. Guo, Jing & Yu, Jiaqi & Tian, Ziqing, 2025. "Financial technology, population aging, and corporate innovation," International Review of Financial Analysis, Elsevier, vol. 100(C).
    4. Wei, Xiaohui & Li, Jian & Li, Yuanhaocheng, 2025. "Institutional environment, credit risk expectations, and firms' investment strategies," Finance Research Letters, Elsevier, vol. 81(C).
    5. Alexakis, Christos & Gogas, Periklis & Petrella, Giovanni & Polemis, Michael & Salvadè, Federica, 2025. "Investigating the investment readiness of European SMEs: A machine learning approach," International Review of Financial Analysis, Elsevier, vol. 105(C).
    6. I. V. Mitrofanova & O. A. Chernova & M. V. Pleshakova, 2025. "Impact of Investments in Fixed Capital on Innovative Development of Regions of the Southern Federal District," Regional Research of Russia, Springer, vol. 15(4), pages 696-705, December.
    7. Yang, Siyuan & Du, Yunsu, 2025. "Private equity and the risk-taking of small and medium-sized enterprises," Finance Research Letters, Elsevier, vol. 85(PE).
    8. Che, Shuai & Tao, Miaomiao & Silva, Emilson & Sheng, Mingyue Selena & Zhao, Congyu & Wang, Jun, 2024. "Financial misallocation and green innovation efficiency: China's firm-level evidence," Energy Economics, Elsevier, vol. 136(C).
    9. Zhao, Qiao & Wang, Wangqing, 2024. "Impact of digital financial tools on intermediate goods: Synergies between external funding and internal R&D investment," Finance Research Letters, Elsevier, vol. 67(PB).
    10. Li, Na & Zhang, Xianhua, 2025. "Digital empowered business environment and enterprise innovation: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).
    11. Liu, Zhe & Wang, Chuanhui, 2024. "How does a fair competitive environment facilitate the growth of private enterprises: A quasi-natural experiment based on the antimonopoly law," Finance Research Letters, Elsevier, vol. 67(PB).

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