论文作者：1. Duan Liu（Business School, Hunan University）

2. Chen Wang（Business School, Hunan University）

3. Hui Zhang（Business School, Hunan University）

4. Shujie Yao（Liaoning University）

5. Zixin Li（Business School, Hunan University）

期刊名：《Research in International Business and Finance》

发表时间：2023年6月

文章摘要：Previous studies on developed economies have shown that firms with more research and development (R&D) activities tend to hold more cash. In a transitional economy, such as China, where financial market imperfections prevail, the likelihood of firms reserving cash for R&D is even higher. This study identifies two alternative credit financing channels, equity state-ownership and bank connection, that can be used by Chinese listed firms to raise external funds and mitigate the market imperfection problem. Typical external financing facilitation channels (EFFCs) effectively mitigate financial constraints through reducing information asymmetry between firms and creditors, alleviating R&D dependence on cash holdings. However, as China’s financial reform deepens, market environment improvement weakens the EFFC effect. Hence, this study deliberates on the mechanisms by which the EFFC effect may be reduced, leading to useful policy implications for financial market reform in China to abate innovation costs.

关键词：Financial market imperfection; Cash-R&D sensitivity; External financing facilitation channel (EFFC); Chinese listed firms