Loose monetary policy and corporate NPD R&D innovation

Based on the data of Chinese listed companies from 2006 to 2022, this paper shows that loose monetary policy will significantly promote enterprises' NPD innovation. At the same time, financial subsidies can strengthen this promoting effect. Nowadays, policy support is to alleviate the problem o...

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Bibliographic Details
Published in:International review of financial analysis 2024-03, Vol.92, p.103086, Article 103086
Main Authors: Meng, Lingxing, Hou, Yufei, Dong, Tianyu, Su, Wen
Format: Article
Language:English
Subjects:
Fiscal subsidies
Loose monetary policy
NPD
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Summary:Based on the data of Chinese listed companies from 2006 to 2022, this paper shows that loose monetary policy will significantly promote enterprises' NPD innovation. At the same time, financial subsidies can strengthen this promoting effect. Nowadays, policy support is to alleviate the problem of insufficient innovation ability of enterprises from the perspective of external financing, it does not fundamentally solve the lack of innovation ability of enterprises, and has become the key problem of attention and research in academic circles. However, existing research pays less attention to the essence of improving NPD R&D innovation readiness, especially how to stimulate the innovation motivation of management is the lack of in-depth research to solve the fundamental problems of insufficient innovation investment and low innovation quality. •We examine the relationship between loose monetary policy and corporate NPD R&D Innovation.•We find that fiscal subsidies plays a mediating role in the mechanism of action.•Fiscal subsidies reinforces this facilitating effect.
ISSN:1057-5219
1873-8079
DOI:10.1016/j.irfa.2024.103086