Download pdf
Mediation Effect Analysis Between Firm Leverage, Competitive Intensity and Innovation Performance
- 1 chool of Management and Economics, South China Normal University, Guangzhou, 510000, China
* Author to whom correspondence should be addressed.
Abstract
The business environment has become more severe in recent years because of the impact of trade friction between China and America and the global epidemic. To achieve long-term survival and development, enterprises must carry out innovative activities and develop new products to meet market demand. We use empirical analysis to study the mechanism of leverage on innovation performance based on the data of listed companies in the Shanghai and Shenzhen exchanges in 2022. This study shows that firms' leverage has a positive impact on their innovation performance, while firms' gross profit margins play a negative mediating effect in it. So, firm leverage can decrease gross margins and thus improve innovation performance.
Keywords
Innovation Performance, Firm Leverage, Competitive Intensity, Mediating Effect
[1]. Hu, W., Long, X., and Yu, L.." R&D Investment, Policy Incentives and Firm Innovation Performance." Communication of Finance and Accounting .16(2023):35-40. doi:10.16144/j.cnki.issn1002-8072.2023.16.030.
[2]. Li Jian, Yang Beibei, and Pan Zhen." Government Subsidies, Equity Concentration and Corporate Innovation Sustainability." China Soft Science .06(2016):180-192.
[3]. Zhou, J., and Li, M., Manman." A Study of Executive Team Stability and Firms' Innovation Performance - Based on the Mediating Effect of R&D Investment." Modern Business .29(2022):77-80. doi:10.14097/j.cnki.5392/2022.29.020.
[4]. Aghion, Philippe, et al. "Competition and innovation: An inverted-U relationship." The quarterly journal of economics 120.2 (2005): 701-728.
[5]. Zhang Xuan, et al." Credit Rent Seeking, Financing Constraints and Firm Innovation." Economic Research Journal 52.05(2017):161-174.
[6]. Xie Weimin, Tang Qingquan, and Lu Shanshan." Government R&D Funding, Firms' R&D Expenditure and Independent Innovation - Empirical Evidence from Listed Companies in China." Journal of Financial Research .06(2009):86-99.
[7]. Zhang Yifan. Product market competition, financing constraints and dynamic adjustment of capital structure.2022. Harbin Univerity Of Commerce, MA thesis.
[8]. Wen Zhonglin. Zhang Lei, Hou Jetai, Liu Hongyun." Mediation effect test procedure and its application." Acta Psychologica Sinica .05(2004):614-620.
Cite this article
Lin,T. (2024). Mediation Effect Analysis Between Firm Leverage, Competitive Intensity and Innovation Performance. Advances in Economics, Management and Political Sciences,97,352-358.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).