IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i5p1390-1414.html
   My bibliography  Save this article

How does the business cycle affect firm innovation? Evidence from China’s listed companies

Author

Listed:
  • Qun Zhang
  • Jingde Chen
  • Peihui Zhang
  • Hao Liu

Abstract

This article investigates how the business cycle affects firm innovation performance by examining patent data for China’s listed companies from 2003 to 2017. The empirical results show that firms apply for more patents and receive more patent authorizations during economic recessions than during expansions. We uncover the mechanism underlying the countercyclical pattern of firm innovation performance by examining how the business cycle affects it through the moderating role of firm leverage while higher market concentration increases its sensitivity to the dynamics of the business cycle. We also find the more pronounced effect in state-owned firms and the positive effect of policy support on patent authorization performance, thus providing alternative explanations for the rise of firm innovation in China.

Suggested Citation

  • Qun Zhang & Jingde Chen & Peihui Zhang & Hao Liu, 2022. "How does the business cycle affect firm innovation? Evidence from China’s listed companies," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(5), pages 1390-1414, April.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:5:p:1390-1414
    DOI: 10.1080/1540496X.2021.1877132
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2021.1877132
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2021.1877132?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.

    More about this item

    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:mes:emfitr:v:58:y:2022:i:5:p:1390-1414. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.