State Ownership and Corporate Innovative Efficiency

49 Pages Posted: 29 May 2020

See all articles by Jerry Cao

Jerry Cao

Independent

Douglas J. Cumming

Florida Atlantic University

Sili Zhou

Fanhai International School of Finance and School of Economics, Fudan University

Date Written: April 1, 2020

Abstract

In this paper, we investigate the innovative efficiency of SOEs in China. Innovative efficiency refers to output of patents per dollar spending of R&D expenditure. The data indicate that minority SOEs are substantially more innovatively efficient than nonSOEs and majority SOEs. The relative innovative efficiency of minority SOEs is more pronounced amongst firms with high financial constraints. The data are consistent with the view that, in the Chinese context, there are favorable benefits to partial state ownership through access to talent, connections, and technological resources that enable efficient patent outcomes from R&D expenditure.

Keywords: State Ownership, Innovative Efficiency, Financial Constraints

JEL Classification: G32, O32, L33

Suggested Citation

Cao, Jerry and Cumming, Douglas J. and Zhou, Sili, State Ownership and Corporate Innovative Efficiency (April 1, 2020). Emerging Markets Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3590221 or http://dx.doi.org/10.2139/ssrn.3590221

Jerry Cao

Independent

Douglas J. Cumming

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Sili Zhou (Contact Author)

Fanhai International School of Finance and School of Economics, Fudan University ( email )

Room 520, Building 5, 220 Handan Road
Shanghai
China

HOME PAGE: http://siliz.weebly.com/

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