Curse or blessing: National industrial investment fund and corporate R&D in China*

作者：Shao, Chuanlin; Tao, Yunqing; Chen, Dong; Ye, Yongwei^*

来源：Finance Research Letters, 2023, 54: 103724.

DOI：10.1016/j.frl.2023.103724

• National industrial investment fund
• Financial constraints
• Agency conflict
• Corporate R&D

Using the establishment of the Chinese Integrated Circuit Industry Investment Fund in 2014 as a quasi-natural experiment, this paper identifies the causal effect of national industrial investment fund on corporate R&D by using the difference-in-differences (DID) method. We find that the establishment of national industrial investment fund has a significant positive effect on corporate R&D, which is more pronounced in firms with more serious financing constraints, poorer internal governance, and laxer external supervision. Furthermore, the mechanism tests show that this policy helps alleviate firms' financial constraints and agency conflict, thereby increasing corpo-rate R&D. Overall, our findings reveal that the national industrial investment fund has positive effects on corporate R&D, which provides fresh insights into the positive effects of industrial policy.

• 单位
  北京大学