IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v92y2026ics1544612326000450.html

Examining the effects of judicial protection of intellectual property rights on innovation efficiency of technology-based small and medium-sized enterprises in the context of digital finance

Author

Listed:
  • Han, Dana
  • Liu, Hui
  • Du, Hui

Abstract

Based on firm-level data for Chinese technology-based small and medium-sized enterprises (SMEs) from 2011 to 2023, this study examines the impact of judicial protection of intellectual property rights (IPJPS) on the innovation efficiency (IE) of technology-based SMEs in the context of digital finance (Digfin). The main findings are as follows: First, the strength of IPJPS has a positive effect on the IE of technology-based SMEs. Second, Digfin plays a moderating role in the relationship between IPJPS and IE. Third, the positive impact of IPJPS strength on IE exhibits heterogeneity across firms with different levels of financing constraints. Finally, the moderating effect of Digfin on the relationship between IPJPS and IE also shows heterogeneity across firms with differing financing constraints. The study reveals the complex roles of IPJPS and Digfin in enhancing IE among technology-based SMEs and provides valuable empirical evidence for policymakers.

Suggested Citation

  • Han, Dana & Liu, Hui & Du, Hui, 2026. "Examining the effects of judicial protection of intellectual property rights on innovation efficiency of technology-based small and medium-sized enterprises in the context of digital finance," Finance Research Letters, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finlet:v:92:y:2026:i:c:s1544612326000450
    DOI: 10.1016/j.frl.2026.109514
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612326000450
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2026.109514?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Choung, Youngjoo & Chatterjee, Swarn & Pak, Tae-Young, 2023. "Digital financial literacy and financial well-being," Finance Research Letters, Elsevier, vol. 58(PB).
    2. Liu, Xiaoyu & Wang, Yuanzhu, 2025. "Artificial intelligence technology, risk taking, and financing costs of technology-based firms," Finance Research Letters, Elsevier, vol. 85(PA).
    3. Chengli Zheng & Jiayu Jin & Liyan Han, 2024. "Reduced interest option pricing for green bonds," China Finance Review International, Emerald Group Publishing Limited, vol. 14(2), pages 228-268, May.
    4. Di Guo & Kun Jiang, 2022. "Venture capital investment, intellectual property rights protection and firm innovation: evidence from China," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 34(5-6), pages 434-470, May.
    5. Jia, Xiao & Lei, Ziyu & Dai, Yunhao & Kong, Dongmin, 2026. "Green mergers and acquisitions: Unveiling the greenwashing motive," Finance Research Letters, Elsevier, vol. 91(C).
    6. Zheng, Panpan & Li, Zhen & Zhuang, Ziyin, 2023. "The impact of judicial protection of intellectual property on digital innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    7. Ding, Qian & Huang, Jianbai & Chen, Jinyu, 2023. "Does digital finance matter for corporate green investment? Evidence from heavily polluting industries in China," Energy Economics, Elsevier, vol. 117(C).
    8. Yulia V. Ioda & Sergey N. Yashin & Svetlana V. Plyasova & Sergey V. Ponomarev & Ilyuza M. Khanova, 2023. "Identifying the competitive advantages of small and medium-sized enterprises in creating different types of innovations," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 15(1), pages 73-89.
    9. Zhenyu Zhang & Ke Zhu & Jiaxuan Qu, 2024. "RETRACTED ARTICLE: Intellectual Property Rights and Patented Knowledge: Implications for Financing Leases in the Clean Energy Sector of China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12472-12502, September.
    10. Dingjun Yao & Ruhao Ding & Jiahui Chen & Yilin Liao, 2024. "RETRACTED ARTICLE: Bridging the Financing Gap for Unlisted Science and Technology-Based SMEs in China: A Comprehensive Evaluation Framework," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18531-18589, December.
    11. Shang, Yuping & Raza, Syed Ali & Huo, Zhe & Shahzad, Umer & Zhao, Xin, 2023. "Does enterprise digital transformation contribute to the carbon emission reduction? Micro-level evidence from China," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 1-13.
    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. Tian, Xinci & Ma, Yueyue, 2026. "Digital asset intensity and strategic disclosure effects on firm performance: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 105(C).
    2. Li, He, 2025. "The effect of digital technology innovation on low carbon investment in renewable energy enterprises," Renewable Energy, Elsevier, vol. 239(C).
    3. Yang, Ping & Lv, Yanqin & Chen, Xiaodan & Lv, Juan, 2024. "Digital finance, natural resource constraints and firms' low-carbon behavior: Evidence from listed companies," Resources Policy, Elsevier, vol. 89(C).
    4. Wang, Hua & Xing, Bin & He, Tianshu, 2025. "Does judicial protection of intellectual property promote corporate innovation?," Finance Research Letters, Elsevier, vol. 85(PB).
    5. Pengfei Cheng & Mengzhen Wang & Baekryul Choi, 2024. "IPR Protection and Sustainable Economic Growth: Domestic R&D Level and International R&D Trade Cooperation Perspective," Sustainability, MDPI, vol. 16(14), pages 1-16, July.
    6. Jing Ma & Huaichao Chen & Kai Wang & Yifan Ma, 2025. "Research on the Impact of Digital Transformation on Carbon Performance of Chinese Manufacturing Enterprises," SAGE Open, , vol. 15(2), pages 21582440251, June.
    7. Tianchu Feng & Andrea Appolloni & Jiayu Chen, 2024. "How does corporate digital transformation affect carbon productivity? Evidence from Chinese listed companies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 31425-31445, December.
    8. Wu, WenJun & Liu, Yaofei, 2025. "Path analysis of intellectual property judicial protection: From court establishment to efficiency enhancement," Finance Research Letters, Elsevier, vol. 86(PG).
    9. Shuhao Zhang & Xuetong Li & Daqian Shi, 2025. "How does digital finance affect energy consumption in China? Empirical evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 10719-10735, May.
    10. Gao, Jie & Li, Zhizhuo & Nguyen, Thithuha & Zhang, Wentao, 2025. "Digital transformation and enterprise employment," International Review of Economics & Finance, Elsevier, vol. 99(C).
    11. Tingting Song & Hongyue Li & Ziyang Feng, 2024. "Policy and market mechanisms for promoting sustainable energy transition: role of government and private sector," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-30, August.
    12. Qiang Tu & Limei Zuo & Jianlei Mo & Yingnan Wang, 2026. "Carbon pricing, green innovation, and production efficiency—new evidence from China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 31(3), pages 1-32, March.
    13. Zhu, Minghao & Shi, Haimeng & Kong, Rong & Khalid, Zarqa & Hassan, Maaz & Chen, Zhe, 2026. "Does digital finance improve household financial health? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 96(C).
    14. Decai Tang & Ziqian Zhao & Jiannan Li & Valentina Boamah, 2024. "Research on coupling coordination degree of digital finance and economic resilience in the Yangtze River Economic Belt," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 120(15), pages 14279-14309, December.
    15. Keminhui Liu, 2024. "Impact of Heterogeneous Environmental Regulation on Carbon Emissions: Firm-Level Evidence from China's Manufacturing Industry," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(12), pages 1-44, December.
    16. Zhipeng Yu & Yi Liu & Taihua Yan & Ming Zhang, 2024. "Carbon emission efficiency in the age of digital economy: New insights on green technology progress and industrial structure distortion," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4039-4057, July.
    17. Guoxia Wang & Linbo Li, 2025. "Impacts of Enterprise Digital Transformation on Industrial Structure Adjustment—Evidence from China," SAGE Open, , vol. 15(4), pages 21582440251, October.
    18. Sun, Lipeng & Luo, Kaikai & Zhou, Chaobo & Yan, Jiale, 2025. "Can the government environmental audits improve corporate green investment? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 97(C).
    19. Li, Yu & Bai, Tianpeng & Sha, Ya & Xu, Zitong, 2025. "Concentration of supply chain, internal control, and corporate risk-taking," International Review of Financial Analysis, Elsevier, vol. 103(C).
    20. Liu, Zegang & Cheng, Wen & He, Mei & Duan, Chaojun & Pan, Xingchen, 2025. "Digital technology innovation, value chain reshaping and digital transformation," Finance Research Letters, Elsevier, vol. 85(PA).

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:92:y:2026:i:c:s1544612326000450. 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.