Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

4-2026

Abstract

The national industrial-financial cooperation pilot policy represents a key strategic initiative to implement China's strategy of building a "financial powerhouse" and guide financial resources toward empowering high-quality development in the real economy. In December 2016, four central government departments in China jointly announced the first batch of national industrial-financial cooperation pilot cities. Leveraging this quasi-natural experiment, this study comprehensively evaluates the impact of the pilot policy on corporate R&D investment activities using a sample of Chinese A-share listed companies from 2014 to 2019.

Research findings indicate: (1) The industrial-financial cooperation pilot policy significantly increases enterprises' R&D investment levels. Specifically, compared to enterprises in non-pilot cities, pilot city enterprises saw their R&D investment rise by approximately 7% following the policy implementation, with R&D investment as a percentage of total assets increasing by about 1.4‰. (2) The study's findings remain robust after conducting a series of robustness tests, including pre-trend analysis, accounting for the non-random selection of policy pilot programs, placebo testing, controlling for the influence of inherent differences among firms and other major policies during the same period, adjusting the measurement method for corporate R&D investment, and extending the sample period. (3) Mechanism analysis indicates that the industrial-financial cooperation pilot policy primarily provides financial support to enterprises in pilot cities through fiscal subsidy and credit support effects. (4) Heterogeneity analysis reveals that the promotional effect of the industrial-financial cooperation pilot policy on corporate R&D investment exhibits heterogeneity at the regional level (stronger among enterprises in eastern regions and those with higher regional market integration), industry level (stronger for technology-intensive enterprises, high-tech, and those with high external financing dependency), and firm level (stronger for smaller, non-state-owned, and high-growth enterprises). (5) Further analysis indicates that the promotional effect of the pilot policy on corporate R&D investment increases with the intensity of policy implementation, and this effect manifests primarily as an intensive margin rather than an extensive margin. Moreover, the policy generates output spillover effects, enhancing firms' innovation output, innovation efficiency, and the R&D investment-productivity sensitivity. This substantially contributes to increasing both corporate and national innovation outcomes while amplifying innovation's enabling role in high-quality economic development.

Against the backdrop of China's concerted efforts to advance its innovation-driven development strategy and build a financial powerhouse, the findings of this study hold significant theoretical implications and policy value. Theoretically, by focusing on corporate R&D funding allocation activities, this research enriches the academic literature on the economic consequences of China's industrial-financial cooperation pilot policy. Practically, these conclusions contribute to a comprehensive understanding of how the national pilot policy incentivizes corporate R&D investment and guide future policy optimization directions.

Keywords

Industrial-Financial Cooperation, R&D Investment, Cash Flow Financing, Intensive Margin, Output Spillover

Degree Awarded

Doctor of Bus Admin (CKGSB)

Discipline

Economics | Finance | Finance and Financial Management

Supervisor(s)

FU, Fangjian

First Page

1

Last Page

130

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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