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2011•The Journal of Financial ResearchRequires access

Financial Development,Financing Constrains and Firms' R&D Investment

Fnag Hongxin

Open publisher page 11 citations

Abstract

The financing resource for firms' RD investment is a key factor affecting the success of Firms' RD Investment Whether local financial development affects the available financing resource of firms' RD investment and boosts firms' RD investment is a much-needed research issue.In this paper we investigate the effect of local financial development on the firms' RD investment,using a rich data set of a large number of Chinese listed firms over the 2002～2006.There is evidence that regional financial development has a significant and positive effect on the firms' RD investment,particularly for small and private controlled firms.There is also some evidence that the positive effect of financial development on the firms' RD investment is hampered by local government intervention in financial system.

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What this paper is about

The financing resource for firms' RD investment is a key factor affecting the success of Firms' RD Investment Whether local financial development affects the available financing resource of firms' RD investment and boosts firms' RD investment is a much-needed research issue.In this paper we investigate the effect of local financial development on the firms' RD investment,using a rich data set of a large number of Chinese listed firms over the 2002～2006.There is evidence that regional financial development has a significant and positive effect on the firms' RD investment,particularly for small and private controlled firms.There is also some evidence that the positive effect of financial development on the firms' RD investment is hampered by local government intervention in financial system.

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OpenAlex reports 11 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

The financing resource for firms' RD investment is a key factor affecting the success of Firms' RD Investment Whether local financial development affects the available financing resource of firms' RD investment and boosts firms' RD investment is a much-needed research issue.In this paper we investigate the effect of local financial development on the firms' RD investment,using a rich data set of a large number of Chinese listed firms over the 2002～2006.There is evidence that regional financial development has a significant and positive effect on the firms' RD investment,particularly for small and private controlled firms.There is also some evidence that the positive effect of financial development on the firms' RD investment is hampered by local government intervention in financial system.

Key concepts: Finance, Investment (military), Business, Internal financing, Open-ended investment company, Resource (disambiguation), Financial system, Return on investment

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