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ABSTRACT
This paper attempts to explain the continuous growth of firm innovation of Chinese enterprises from a new perspective of cluster commercial credit. Using data from the China Industrial Enterprise Database, this paper finds that cluster commercial credit can promote firm innovation by relaxing financing constraints, and this result is very robust and does not vary with the estimated model. The mechanism is further validated by the analysis after dividing the subsample according to ownership structure. This paper shows that although the capital market is not yet developed in China, firms can use cluster commercial credit to obtain financing for innovation.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Additional information
Funding
This work was supported by the A Study on the Impact of Delayed Retirement on the Balance of Pensions in China [JJKH20220936SK];Study on the Characteristics of Corruption and Anti-corruption Strategies in the Financial Sector in the New Era - Based on the Perspective of Insurance Industry;