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

Zhengye Chen * 1 , Zixing Chen 2 , Qiyou Wu 3 , Yucheng Wang 4
1 University of Southern California
2 Duke University
3 Shanghai Jiaotong University
4 Nanjing Audit University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 30, 48-53
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
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.
Citation Zhengye Chen, Zixing Chen, Qiyou Wu, Yucheng Wang. Breaking the Stereotype: How Corporate Financialization Can Boost R&D Investment. AEMPS (2023) Vol. 30: 48-53. DOI: 10.54254/2754-1169/30/20231420.

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
© 2023 The Author(s)
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

Copyright © 2023 EWA Publishing. Unless Otherwise Stated