The strength of intellectual property protection, corporate financing constraints, and corporate governance efficiency: Mechanisms and heterogeneity analysis

This paper aims to conduct an in-depth investigation into the complex relationship among the strength of intellectual property protection, corporate financing constraints, and corporate governance efficiency. To this end, it selects Chinese non-financial listed companies from 2007 to 2023 as the research sample and employs empirical methods including a two-way fixed effects model, mediation effect model, and heterogeneity analysis. The results indicate that the enhancement of intellectual property protection significantly promotes corporate governance efficiency, demonstrating a positive correlation between the two. In marked contrast, there is a significant negative correlation between financing constraints and corporate governance efficiency, suggesting that financing constraints to some extent inhibit the improvement of governance efficiency. Further mediation analysis reveals that financing constraints serve as a mediating factor between intellectual property protection and corporate governance efficiency. Moreover, heterogeneity analysis of the mediation effect finds significant differences in the mediating role of financing constraints between firms in high-tech and non-high-tech industries. These findings offer new perspectives for a deeper understanding of the factors influencing corporate governance efficiency and hold important theoretical and practical implications for enterprises seeking to enhance governance efficiency.