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Article Dans Une Revue Applied Economics Année : 2023

The impact of economic policy uncertainty on corporate innovation in China: the role of family ownership and political connections

Sultan Sikandar Mirza
Tanveer Ahsan
Bakr Al-Gamrh

Résumé

Economic policy uncertainty (EPU) may pose a risk or provide an opportunity for corporations. This study empirically investigates the impact of EPU on the corporate innovation of Chinese firms using patent information as a proxy for corporate innovation. The study then examines whether family ownership and political connections impede/boost corporate innovation. Using a longitudinal panel dataset of 3,085 Chinese firms listed during the period from 2009 to 2020, the study observes that EPU enhances corporate innovation in China. The study also finds that family firms negatively impact innovative projects during EPU. The study then shows that political connections positively moderate the effects of EPU on corporate innovation. The results of the study are robust to time and industry fixed effects, endogeneity issues, and firm-level time-varying factors.
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Dates et versions

hal-04388100 , version 1 (11-01-2024)

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Sultan Sikandar Mirza, Tanveer Ahsan, Bakr Al-Gamrh, Muhammad Ansar Majeed, Fazal Muhammad. The impact of economic policy uncertainty on corporate innovation in China: the role of family ownership and political connections. Applied Economics, 2023, Applied Economics, ⟨10.1080/00036846.2023.2291414⟩. ⟨hal-04388100⟩
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