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Financialization of manufacturing companies and corporate innovation: Lessons from an emerging economy

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  • Kun Su
  • Heng Liu

Abstract

Despite the increased attention for the financialization issue in the academic field, the extent literature offers limited knowledge about its potential consequence on the innovation outcomes of manufacturing firms in emerging markets. We endeavor to investigate the effect of manufacturing firms' financialization behaviors on corporate innovation and its boundary conditions. Hypotheses of both direct and moderating effects are thus developed, and we test these hypotheses using 3373 observations of the public listed firms in China. By doing so, we thus shed light on an underappreciated antecedent (i.e., financialization) in an under‐theorized setting (emerging markets) over the topic of corporate innovation.

Suggested Citation

  • Kun Su & Heng Liu, 2021. "Financialization of manufacturing companies and corporate innovation: Lessons from an emerging economy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 863-875, June.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:4:p:863-875
    DOI: 10.1002/mde.3278
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