How does equity restriction affect innovation quality? Evidence from listed manufacturing companies in China.

ABSTRACT: Improving the innovation quality of manufacturing companies has currently received increasing attention in the transformation from "Made in China" to "Created in China". Equity restriction is now one of the most talked about issues in China's corporate governance structures, but we have a limited understanding of the impact of equity restriction on innovation quality. This paper empirically analyzes the relationship and intrinsic mechanism between equity restriction and innovation quality using all A-share listed manufacturing companies in China from 2007 to 2021 as the research sample. First, the Tobit regression model is used to analyze the impact of equity restriction on innovation quality, and the Heckman two-stage model is used for the endogenous test. Then, the three-step regression

SUBMITTER: Chang S 

PROVIDER: S-EPMC10703261 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature