From innovation aversion to innovation tolerance: A study of influence of bank debt governance towards technological innovation

Abstract

Abstract: Rapid-changing competition environment has provided banks sufficient power to make an evolution from aversion to tolerance towards enterprises' technological innovation. This paper has analyzed the impact of bank debt governance upon corporations' technological innovation capability, and then examined the mediation effects of agency cost and innovation input to identify the transmission path between debt governance and innovation. The results show that:(1) Bank debt governance can enhance corporations' innovation capability, which proves banks begin to be tolerant or supportive of innovation behavior. (2) Agency cost has a significant mediation effect between bank governance and innovation capability, which means bank debt governance can promote corporations innovation capability through governance optimization. (3) The mediation effect of innovation input is not significant. Not only have these results broadened pecking order theory of financing and bank monitoring theory, but also provided scientific evidence of technological innovation practice for corporations.

Key words: bank debt governance, innovation tolerance, technological innovation capability, impact path

CLC Number:

F276.6

Wang Xu. From innovation aversion to innovation tolerance: A study of influence of bank debt governance towards technological innovation[J]. Science Research Management, 2015, 36(11): 184-192.

References

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