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Judicial efficiency, corporate innovation investment, and financing efficiency

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  • Yu, Jungang
  • Ma, Xiaohua
  • Niu, Yanmei

Abstract

Against the backdrop of the ongoing implementation of the innovation-driven development strategy, how enterprises can enhance financing efficiency through innovation investment has become a pressing research topic. Based on data from A-share listed companies in China from 2000 to 2023, this paper systematically examines the impact of corporate innovation investment on financing efficiency. It further analyzes the moderating effect of judicial efficiency and the heterogeneous effects of corporate governance quality and industry technological attributes. The results reveal that corporate innovation investment significantly improves financing efficiency, while judicial efficiency plays a moderating role in the relationship between corporate innovation investment and financing efficiency. Additionally, the positive effect of innovation investment on financing efficiency is more pronounced in enterprises with high governance quality and in non-technology-intensive industries. This paper enriches the research perspectives on the relationship between innovation and financing, and provides practical references for enterprises to optimize governance structures and innovation strategies, as well as for the government to improve the intellectual property system.

Suggested Citation

  • Yu, Jungang & Ma, Xiaohua & Niu, Yanmei, 2025. "Judicial efficiency, corporate innovation investment, and financing efficiency," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325019932
    DOI: 10.1016/j.frl.2025.108739
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    References listed on IDEAS

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