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Exploration of the relationship between equity financing dependence, financing constraints, and corporate innovation performance

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  • Wu, Saijun
  • Li, Changzheng
  • Huang, Fei
  • Yu, Qing

Abstract

This paper examines the influence of equity financing dependence on corporate innovation performance by utilizing A-share listed companies on the Shanghai and Shenzhen Stock Exchanges from 2012 to 2022 as samples. The research reveals that a reliance on equity financing exerts a detrimental effect on corporate innovation performance. Furthermore, financing constraints are found to mitigate the inhibitory influence of debt financing dependence on corporate innovation. Additionally, an increase in debt financing notably impairs the innovation performance of non-state-owned enterprises.

Suggested Citation

  • Wu, Saijun & Li, Changzheng & Huang, Fei & Yu, Qing, 2025. "Exploration of the relationship between equity financing dependence, financing constraints, and corporate innovation performance," Finance Research Letters, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002764
    DOI: 10.1016/j.frl.2025.107012
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    Cited by:

    1. Hongzhuo Chen & Mohd Faizal Basri & Hazianti Abdul Halim, 2025. "Equity and Debt Financing Dependence, Green Innovation, and the Moderating Role of Financial Reporting Quality: Evidence from Chinese Firms," Sustainability, MDPI, vol. 17(17), pages 1-27, August.
    2. Zhou, Yong & Zhang, Jin, 2025. "How does anti-unfair competition law reduce enterprises' financing costs?," Finance Research Letters, Elsevier, vol. 85(PC).
    3. Chen, Lusi & Li, Shinan & She, Zhili, 2025. "A study on the impact of artificial intelligence applications on corporate green technological innovation: A mechanism analysis from multiple perspectives," International Review of Economics & Finance, Elsevier, vol. 103(C).

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