Skip to main content
Financial Innovation

Table 5 Blockholders Ownership and Firm Innovation

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

 

INNOV_EXP

INNOV_PAT

 

(1)

(2)

(3)

(4)

(5)

(6)

CPQS

− 3.920***

− 4.037***

− 4.048***

− 27.501***

− 28.135***

− 27.764***

 

(0.431)

(0.456)

(0.456)

(8.614)

(8.844)

(8.678)

INSTITUTION

0.005***

  

0.020

  
 

(0.001)

  

(0.023)

  

SHRHFD5

 

− 0.526

  

19.001***

 
  

(0.334)

  

(6.619)

 

TO

− 5.820***

− 6.457***

− 6.435***

− 24.580

− 27.133*

− 27.632*

 

(1.364)

(1.309)

(1.304)

(15.706)

(15.901)

(15.979)

RET

0.758***

0.869***

0.869***

7.093**

7.357**

7.356**

 

(0.265)

(0.252)

(0.253)

(3.525)

(3.397)

(3.335)

FREE

0.012***

0.010***

0.012***

0.024

0.082*

0.023

 

(0.002)

(0.002)

(0.002)

(0.041)

(0.044)

(0.040)

VOL

− 0.046*

– 0.054*

− 0.051*

− 0.141

0.040

− 0.055

 

(0.028)

(0.029)

(0.029)

(0.438)

(0.449)

(0.443)

EARN

0.009

0.014

0.004

− 0.355

− 0.669

− 0.285

 

(0.315)

(0.318)

(0.320)

(2.701)

(2.678)

(2.733)

INTAN

0.856***

0.857***

0.901***

− 5.631

− 3.870

− 5.485

 

(0.229)

(0.241)

(0.239)

(3.622)

(3.556)

(3.599)

LEV

1.183***

1.217***

1.204***

4.234

3.823

4.258

 

(0.196)

(0.202)

(0.203)

(3.924)

(3.940)

(3.930)

ROE

0.524*

0.548*

0.537*

− 1.335

− 1.653

− 1.252

 

(0.281)

(0.278)

(0.277)

(3.139)

(3.162)

(3.127)

Q

− 0.009

− 0.008

− 0.008

− 0.236

− 0.245

− 0.235

 

(0.020)

(0.021)

(0.021)

(0.214)

(0.218)

(0.216)

BTM

0.843***

0.796***

0.803***

11.745***

11.907***

11.603***

 

(0.153)

(0.170)

(0.169)

(3.311)

(3.400)

(3.347)

CAPITAL

1.131***

1.166***

1.142***

15.947*

15.292*

16.181*

 

(0.432)

(0.417)

(0.417)

(8.403)

(8.387)

(8.459)

SALES

0.001***

0.001***

0.002***

− 0.002

0.001

− 0.001

 

(0.000)

(0.001)

(0.000)

(0.007)

(0.007)

(0.007)

lnAGE

− 0.065

− 0.070

− 0.074

− 0.271

− 0.501

− 0.380

 

(0.091)

(0.092)

(0.091)

(1.824)

(1.789)

(1.822)

CONSTANT

16.399***

16.831***

16.698***

0.933

− 1.838

2.744

 

(0.438)

(0.447)

(0.438)

(5.271)

(5.386)

(5.141)

Year dummies

Yes

Yes

Yes

Yes

Yes

Yes

Industry dummies

Yes

Yes

Yes

Yes

Yes

Yes

N

4640

4664

4664

4695

4719

4719

Adj.R2

0.360

0.352

0.351

0.023

0.026

0.023

  1. This table presents the pooled OLS estimation results for the linear relationship between stock liquidity and firm innovation. We substitute TSHARE with institutional shareholdings (INSTITUTION) in the baseline models. The independent variable is CPQS as a liquidity proxy, whereas the dependent variables are INNOV_EXP and INNOV_PAT. The natural logarithm of R&D expenditures (INNOV_EXP) is used to measure the innovation input, whereas the number of granted patents (INNOV_PAT) is the innovation output. The definition of all variables is provided in Appendix A. For brevity, year and industry dummies are suppressed, and only white and 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
Back to article page