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Patent pledge and corporate risk-taking: A quasi-natural experiment from China's patent pledge pilot

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  • Li, Jiawei
  • Wang, Tiezhi
  • You, Meiqi

Abstract

Intellectual property pledge financing, as a novel financing method, plays a significant role in alleviating financial constraints for enterprises and encouraging them to increase their risk-taking levels. Empirical research results demonstrate that patent pledging significantly enhances the risk-taking levels of enterprises. Further studies reveal that the effect of patent pledging on enhancing corporate risk-taking is more pronounced in samples with greater financing constraints and higher human capital. These research findings provide substantial micro-level evidence for the state to further promote the objectives of the patent pledge policy.

Suggested Citation

  • Li, Jiawei & Wang, Tiezhi & You, Meiqi, 2024. "Patent pledge and corporate risk-taking: A quasi-natural experiment from China's patent pledge pilot," Finance Research Letters, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324005890
    DOI: 10.1016/j.frl.2024.105559
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    References listed on IDEAS

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    1. Xiaodong Yuan & Xiaotao Li, 2022. "Pledging Patent Rights for Fighting Against the COVID-19: From the Ethical and Efficiency Perspective," Journal of Business Ethics, Springer, vol. 179(3), pages 683-696, September.
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    5. Ni Qin & Dongmin Kong, 2021. "Human Capital and Entrepreneurship," Journal of Human Capital, University of Chicago Press, vol. 15(4), pages 513-553.
    6. Xie, Linlin & Liu, Guangqiang & Liu, Boyang, 2023. "Patent pledge policy and stock price crash risk: Evidence from China," Research in International Business and Finance, Elsevier, vol. 65(C).
    7. Li, Kai & Griffin, Dale & Yue, Heng & Zhao, Longkai, 2013. "How does culture influence corporate risk-taking?," Journal of Corporate Finance, Elsevier, vol. 23(C), pages 1-22.
    8. Appel, Ian & Farre-Mensa, Joan & Simintzi, Elena, 2019. "Patent trolls and startup employment," Journal of Financial Economics, Elsevier, vol. 133(3), pages 708-725.
    9. Tian, Guangning & Li, Bo & Cheng, Yue, 2022. "Does digital transformation matter for corporate risk-taking?," Finance Research Letters, Elsevier, vol. 49(C).
    10. Chen, Shen & Chen, Yuran & Zhang, Di & Wang, Jinmei, 2023. "Can minority investor activism promote corporate risk-taking? Evidence from a quasi-natural experiment in China," International Review of Financial Analysis, Elsevier, vol. 85(C).
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    Cited by:

    1. Du, Xiaowei & Yang, Weiqiao, 2025. "Can patent pledges affect corporate financialization?," Finance Research Letters, Elsevier, vol. 73(C).

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