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Financialization of manufacturing companies and corporate innovation: Lessons from an emerging economy
Author(s) -
Su Kun,
Liu Heng
Publication year - 2021
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3278
Subject(s) - financialization , emerging markets , antecedent (behavioral psychology) , business , economics , china , industrial organization , market economy , finance , political science , psychology , developmental psychology , law
Despite the increased attention for the financialization issue in the academic field, the extent literature offers limited knowledge about its potential consequence on the innovation outcomes of manufacturing firms in emerging markets. We endeavor to investigate the effect of manufacturing firms' financialization behaviors on corporate innovation and its boundary conditions. Hypotheses of both direct and moderating effects are thus developed, and we test these hypotheses using 3373 observations of the public listed firms in China. By doing so, we thus shed light on an underappreciated antecedent (i.e., financialization) in an under‐theorized setting (emerging markets) over the topic of corporate innovation.