IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-642-40072-8_75.html
   My bibliography  Save this book chapter

Political Connections, Debt Financing and Firms’ R&D Investment – Evidence from Listed Companies in China

In: Proceedings of 20th International Conference on Industrial Engineering and Engineering Management

Author

Listed:
  • Na Zhang

    (Hunan University)

  • Yu-feng Wang

    (Hunan University)

  • Xiang Yan

    (Hunan University)

Abstract

On the basis of listed company’s date from 2009 to 2011, this paper empirically studies the influence political connections and debt financing have on firm’s research and development investment. It is suggested that there is an inverse correlation between the ratio of debt financing (bank loans) and the research and development intensity. By occupying a large amount of short-term debts, firms fail to reverse the debt financing constraints, and the key still lies in the deficiency of support from long-term debt. Although political connections bring certain long-term debt resources to firms, they fail to generate significant “resource effect” and drive firms’ research and development investment as expected. On the contrary, political connections also bring “extrusion effect”, to which firms should pay enough attention and introspect themselves.

Suggested Citation

  • Na Zhang & Yu-feng Wang & Xiang Yan, 2013. "Political Connections, Debt Financing and Firms’ R&D Investment – Evidence from Listed Companies in China," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), Proceedings of 20th International Conference on Industrial Engineering and Engineering Management, edition 127, pages 747-756, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-40072-8_75
    DOI: 10.1007/978-3-642-40072-8_75
    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 search for a similarly titled item that would be available.

    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:sprchp:978-3-642-40072-8_75. 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.