Abstract
This study investigates the long-term role of innovation in the Chinese IPO market. Innovation outcome (patent) has a promoting effect on the long-term market, while innovation input (R&D) shows a variable inhibitory control, which turns into a favourable impact four years after the IPO due to lag and cumulative effects. Moreover, this inhibitory effect increases and has no positive turnback in firms with R&D myopic management. Furthermore, government subsidies strengthen the effect of innovation during different periods while weakening the positive effect of innovation input four years after the IPO due to firms' rent-seeking behaviour aiming to obtain government funds.
Original language | English |
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Pages (from-to) | 3735-3779 |
Number of pages | 45 |
Journal | Accounting & Finance |
Volume | 61 |
Issue number | 2 |
Early online date | 30 Apr 2021 |
DOIs | |
Publication status | Published - Jun 2021 |
Keywords
- government subsidies
- innovation
- IPO
- long-term performance
- myopic management