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Financial Innovation

Table 20 Long-term innovation effect on R&D expenditures

From: Stock liquidity, financial constraints, and innovation in Chinese SMEs

 

INNOV_EXP

 

T + 1

T + 2

T + 3

T + 4

T + 5

T + 6

T + 7

CPQS

− 4.378***

− 4.457***

− 4.158***

− 3.172***

− 2.285**

− 1.974**

− 2.170**

 

(0.532)

(0.749)

(1.200)

(1.108)

(0.949)

(0.776)

(0.935)

TSHARE

0.003**

0.003**

0.002

0.003*

0.003**

0.004*

0.003

 

(0.001)

(0.001)

(0.002)

(0.002)

(0.002)

(0.002)

(0.003)

SHRHFD5

− 0.729**

− 0.622*

− 0.461

− 0.398

− 0.302

− 0.429

− 0.412

 

(0.337)

(0.361)

(0.385)

(0.423)

(0.467)

(0.509)

(0.521)

TO

− 4.296***

− 2.521**

− 1.021

0.438

0.967

1.855

2.397

 

(1.129)

(0.985)

(1.042)

(0.918)

(1.167)

(1.280)

(1.855)

RET

0.980***

0.912***

0.929***

0.447**

0.122

0.001

0.149

 

(0.291)

(0.295)

(0.352)

(0.208)

(0.347)

(0.525)

(0.759)

FREE

0.005*

0.004

0.003

0.002

0.001

− 0.002

− 0.003

 

(0.002)

(0.002)

(0.003)

(0.003)

(0.003)

(0.003)

(0.004)

VOL

− 0.092***

− 0.115***

− 0.116***

− 0.115***

− 0.124**

− 0.168*

− 0.230*

 

(0.030)

(0.029)

(0.029)

(0.037)

(0.057)

(0.102)

(0.134)

EARN

0.058

0.659

4.319***

4.934***

4.965***

4.355***

4.930***

 

(0.331)

(0.863)

(1.080)

(1.174)

(1.316)

(1.287)

(1.779)

INTAN

1.000***

0.862***

0.803***

0.769*

0.999***

0.937**

1.134**

 

(0.234)

(0.238)

(0.294)

(0.398)

(0.335)

(0.441)

(0.571)

LEV

1.066***

0.872***

0.892***

0.884**

0.877**

0.892*

1.050

 

(0.190)

(0.198)

(0.253)

(0.348)

(0.344)

(0.459)

(0.664)

ROE

1.252***

1.402***

0.551

0.382

− 0.089

− 0.107

− 1.926*

 

(0.277)

(0.370)

(0.683)

(0.804)

(0.500)

(0.998)

(1.001)

Q

− 0.011

− 0.014

− 0.035*

− 0.026

− 0.003

0.052

0.066

 

(0.024)

(0.027)

(0.018)

(0.020)

(0.024)

(0.041)

(0.062)

BTM

0.778***

0.697**

0.529

0.311

0.071

0.246

0.131

 

(0.210)

(0.293)

(0.3787)

(0.314)

(0.318)

(0.335)

(0.354)

CAPITAL

1.204**

1.483***

1.679***

1.624**

1.340*

0.977*

0.489

 

(0.471)

(0.521)

(0.609)

(0.826)

(0.707)

(0.548)

(0.718)

SALES

0.002***

0.002***

0.003***

0.003***

0.002***

0.003**

0.004***

 

(0.000)

(0.000)

(0.000)

(0.000)

(0.001)

(0.001)

(0.001)

lnAGE

− 0.101

− 0.104

− 0.097

− 0.105

− 0.112

− 0.149

− 0.123

 

(0.096)

(0.099)

(0.109)

(0.122)

(0.140)

(0.148)

(0.159)

CONSTANT

17.227***

17.092***

17.025***

17.241***

17.352***

17.330***

17.934***

 

(0.459)

(0.481)

(0.518)

(0.537)

(0.573)

(0.687)

(0.660)

Year Dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Industry Dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

N

3907

3195

2511

1963

1494

1113

780

Adj.R2

0.349

0.311

0.280

0.220

0.170

0.152

0.139

  1. This table presents the long-term relationship between stock liquidity and firm innovation proxied by R&D expenditures. We lag the dependent variable for one to seven-year, respectively. The estimation method is pooled OLS. The definition of all variables is provided in Appendix A. For brevity, year and industry dummies are suppressed, and only double-clustered adjustments are reported in parentheses. N is the number of firm-year observations. ***, ** and * denote statistical significance at the 1%, 5% and 10% levels, respectively
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