IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-916-2_42.html

Capital Credit and Corporate Innovation: Evidence from Removing Minimum Capital Requirements

In: Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)

Author

Listed:
  • Yizhe Gu

    (Zhejiang University of Technology)

Abstract

This study investigates the impact the capital credit on corporate innovation activities, focusing on firms in industries with high entry rates. We use removing minimum capital requirements(RMCR) as a quasi-natural experiment and find that in high entry rate industries, the implementation of RMCR significantly promotes corporate innovation. Mechanism tests indicate that this effect operates primarily by alleviating firms’ financing constraints and by improving resource allocation. We confirm the robustness of our results by clustering standard errors at alternative levels and by excluding data from the policy implementation year. Our findings enrich the literature on the economic consequences of the RMCR and provide new evidence on how institutional reforms shape firm-level innovation, with implications for ongoing business registration reforms and innovation-driven economic growth.

Suggested Citation

  • Yizhe Gu, 2025. "Capital Credit and Corporate Innovation: Evidence from Removing Minimum Capital Requirements," Advances in Economics, Business and Management Research, in: Qihui Chen & Nazrul Islam & Zulkiflee bin Mohamed & Yahua Xu (ed.), Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025), pages 382-391, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-916-2_42
    DOI: 10.2991/978-94-6463-916-2_42
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    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:spr:advbcp:978-94-6463-916-2_42. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.