The technological innovation, financing and growth of listed companies
Chen Kunyu
Author information+
Business School of Yunnan University of Finance and Economics, Kunming 650221, Yunnan, China
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History+
Received
Revised
Published
2012-10-31
2014-10-08
2015-03-25
Issue Date
2015-03-20
Abstract
The financing selections of listed companies in innovation projects may be clearly different from other projects due to the former's larger risk, and these financing selections may be reflected in leverage. In addition, the relation between leverage and growth may affected by investment opportunity signal produced by technological innovation. By selecting randomly 592 Listed Companies on the basis of industries composition in China as samples and ten years from 2001 to 2010 as testing period, this paper divides the period into two sub-periods by 2007 since accounting regulations greatly changed this year, and then test how technological innovation affect financing, and how leverage affect growth on the condition of different technological innovation levels. The results show that stronger firms in technological innovation are more likely to increase newly retained earnings, and their leverage is lower. But the evidence about the effect of technological innovation on relation between leverage and growth cannot be found.
Chen Kunyu.
The technological innovation, financing and growth of listed companies[J]. Science Research Management. 2015, 36(3): 64-70
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