IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v73y2025ics1544612324016544.html
   My bibliography  Save this article

Can patent pledges affect corporate financialization?

Author

Listed:
  • Du, Xiaowei
  • Yang, Weiqiao

Abstract

This study examined the impact of patent pledges on corporate financing, drawing on data from China's A-share listed companies from 2006 to 2022. Mechanism testing illustrates that implementing patent pledges can decrease corporate financialization by reducing financing constraints and improving total factor productivity. The findings provide policy recommendations for patent pledge implementation that mitigates business financial risks and promotes economic development. Additional investigation indicates that asset-light and nonstate-owned enterprises gained more significant advantages.

Suggested Citation

  • Du, Xiaowei & Yang, Weiqiao, 2025. "Can patent pledges affect corporate financialization?," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016544
    DOI: 10.1016/j.frl.2024.106625
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324016544
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106625?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fu, Xiaoxia & Wang, Shanshan & Jia, Jia, 2024. "Equity incentives and dynamic adjustments to corporate financialization: Evidence from Chinese A-share listed companies," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 948-966.
    2. Zhang, Mengtao & Li, Wenwen & Luo, Yalin & Chen, Wenchuan, 2023. "Government audit supervision, financialization, and executives' excess perks: Evidence from Chinese state-owned enterprises," International Review of Financial Analysis, Elsevier, vol. 89(C).
    3. Xie, Hongji & Tian, Cunzhi & Pang, Fangying, 2024. "Venture capital and corporate financialization: Evidence from China," The Quarterly Review of Economics and Finance, Elsevier, vol. 93(C), pages 119-136.
    4. Gao, Yuqiang & Wang, Zishuai & Wang, Kaihua & Zhang, Ruiai & Lu, Yuchen, 2023. "Effect of big data on enterprise financialization: Evidence from China's SMEs," Technology in Society, Elsevier, vol. 75(C).
    5. Carter, Colin A. & Revoredo-Giha, Cesar, 2023. "Financialization and speculators risk premia in commodity futures markets," International Review of Financial Analysis, Elsevier, vol. 88(C).
    6. Zhang, Haolin & Feng, Yongqi & Wang, Ying & Ni, Juan, 2024. "Peer effects in corporate financialization: The role of Fintech in financial decision making," International Review of Financial Analysis, Elsevier, vol. 94(C).
    7. 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).
    8. Yahya, Farzan & Lee, Chien-Chiang, 2023. "Disentangling the asymmetric effect of financialization on the green output gap," Energy Economics, Elsevier, vol. 125(C).
    9. de Rassenfosse, Gaétan & Palangkaraya, Alfons, 2023. "Do patent pledges accelerate innovation?," Research Policy, Elsevier, vol. 52(5).
    10. Rengang Su & Ming Li & YinHai Fang & Chonghuai Yang, 2023. "Valuation method of intellectual property pledge financing based on income interval analysis and risk adjustment coefficient," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    11. Rong, Zhao & Zhang, Fuxin & Chen, Shi, 2023. "Short-term loans and Firms' high-quality innovation: Evidence from the access to patent-backed loans in China," China Economic Review, Elsevier, vol. 78(C).
    12. Luo, Yonggen & Wang, Deli & Hu, Shiyang, 2024. "Patent collateral and the trajectory of innovation," Pacific-Basin Finance Journal, Elsevier, vol. 84(C).
    13. Ma, Anmiao, 2024. "The role of management characteristics in trade frictions and corporate financialization," Finance Research Letters, Elsevier, vol. 65(C).
    14. 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).
    15. He, Mingfeng & Huang, Dengshi & Zhou, Jianan, 2023. "The impacts of share pledging on firm investment timing and valuation," International Review of Financial Analysis, Elsevier, vol. 87(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Hua & Zhao, Liang & Tu, Yongqian, 2024. "Patent pledge financing policy and stock price crash risk," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    2. Li, Yan & Zhang, Yiren & Hu, Jian & Wang, Zeyu, 2024. "Insight into the nexus between intellectual property pledge financing and enterprise innovation: A systematic analysis with multidimensional perspectives," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 700-719.
    3. Liu, Zhao & Zhu, Huawei, 2025. "Impacts of patent pledge financing on corporate investment: Evidence from a quasi-natural experiment in China," Pacific-Basin Finance Journal, Elsevier, vol. 89(C).
    4. Huang, Yujie & Li, Shanshan, 2024. "Female directors, ESG performance and enterprise financialization," Finance Research Letters, Elsevier, vol. 62(PB).
    5. Fan, Jiaying & Wang, Yuhan & Xu, Meiling, 2024. "The more valuable the knowledge, the more focused the enterprises: Intellectual property pledge financing and diversification in high-tech enterprises," Finance Research Letters, Elsevier, vol. 70(C).
    6. Tang, Kai, 2024. "The influence of managerial ability on corporate financialization," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 1229-1245.
    7. Li, Yang & Lin, Xiaorong & Lei, Xingfan & Ge, Ji & Guo, Jingyi & Xia, Wenxin, 2024. "Corporate financialization and litigation risk," Finance Research Letters, Elsevier, vol. 67(PA).
    8. Xiao, Ming & Chen, Ning, 2025. "How does social trust promote enterprises' financialization?," International Review of Financial Analysis, Elsevier, vol. 97(C).
    9. Zhu, Ling & Liu, Shasha & Kong, Dongmin, 2023. "Governments' fiscal stress and firm decentralization," International Review of Financial Analysis, Elsevier, vol. 90(C).
    10. Wang, Jie & Cheng, Hanxiu & Qiao, Ke, 2025. "Does experience matter? An examination of individual Auditor's experience on executive implicit corruption," Pacific-Basin Finance Journal, Elsevier, vol. 89(C).
    11. Lee, Chien-Chiang & Xiao, Qian & Zhang, Xiaoming, 2025. "Green credit and systemic risk: From the perspectives of policy and scale," The North American Journal of Economics and Finance, Elsevier, vol. 77(C).
    12. Wang, Yong & Wang, Chao, 2025. "Climate risk and firms’ R&D investment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 99(C).
    13. Bei Liu & Xing Bao & Zhaoxuan Qiu & Yunyun Zhang & Qiu Xia, 2024. "How does financial openness affect pollution emission of industrial enterprises?—Empirical evidence from the entry of foreign banks in China," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 2910-2930, August.
    14. Kim, J.H. John & Anderson, Ronald, 2024. "CEO narcissism and the agency cost of debt," Journal of Empirical Finance, Elsevier, vol. 77(C).
    15. Shiyun Li, 2025. "Leveraging Big Data for SME Credit Risk Assessment: A Novel BP-KMV and GARCH Integration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3321-3349, March.
    16. Yan Su & Chien‐Chiang Lee, 2025. "Green finance, environmental quality and technological innovation in China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 405-425, January.
    17. Ngounou, Borice Augustin & Wang, Mingsen & Zhu, Delong, 2025. "Does energy poverty undermine health spending in Africa? A comparative analysis of public and private healthcare spending," Renewable Energy, Elsevier, vol. 239(C).
    18. Jun, Xiao & Ai, Junwei & Zheng, Lingfeng & Lu, Meiting & Wang, Jianye, 2024. "Impact of information technology and industrial development on corporate ESG practices: Evidence from a pilot program in China," Economic Modelling, Elsevier, vol. 139(C).
    19. Wang, Z., 2025. "Patent Pledge and Technological Innovation: The "Good Faith" of Tesla," Cambridge Working Papers in Economics 2532, Faculty of Economics, University of Cambridge.
    20. Lee, Chien-Chiang & Yan, Jingyang & Wang, Fuhao, 2024. "Impact of population aging on food security in the context of artificial intelligence: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 199(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016544. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.