Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 7th International Conference on Economic Management and Green Development
Series Vol. 30 , 10 November 2023
Open
Access | Article
Breaking the Stereotype: How Corporate Financialization Can Boost R&D Investment
* Author to whom correspondence should be addressed.
Abstract
As Enterprise Financialization refers to the process in which enterprises obtain funds through financing channels to support their business and development activities. This financing channel can include bank loans, bond issuance, stock issuance and other forms. And the purpose of Enterprise Financialization is to improve the efficiency of capital utilization. However, we would test the hypothesis in our research is that the extent to which corporate Financialization increases R&D spending may depend on a variety of factors. And we figure that a rise in R&D spending results from a 1% increase in finalization. This finding confirms the theory that finalization and R&D positively correlated.
Keywords
corporate finance, financialization, R&D investment
References
1. Arrighi G. (1994).The Long Twentieth Century: Money, Power, and the Origins of Our Times [J]. American Political Science Association, 89(4): 427-436.
2. Xu, S., & Guo, L. (2021). Financialization and corporate performance in China: Promotion or inhibition? Abacus. https://doi.org/10.1111/abac.12213
3. Li, Z., Wang, Y., Tan, Y., & Huang, Z. (2020). Does corporate financialization affect corporate environmental responsibility? An empirical study of China. Sustainability, 12(9), 3696. https://doi.org/10.3390/su12093696
4. Feng, Y., Yu, Q., Nan, X., & Cai, Y. (2022). Can employee stock ownership plans reduce corporate financialization? evidence from China. Economic Analysis and Policy, 73, 140–151. https://doi.org/10.1016/j.eap.2021.11.002
5. Du Y., Xie J, Chen J. (2019). CEO's Financial Background and the Financialization of Entity Enterprises[J]. China Industrial Economics, No.374(05):136-154.DOI:10.19581/j.cnki.ciejournal.2019.05.008.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 7th International Conference on Economic Management and Green Development
- ISBN (Print)
- 978-1-83558-081-3
- ISBN (Online)
- 978-1-83558-082-0
- Published Date
- 10 November 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/30/20231420
- Copyright
- 10 November 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited