Do mandatory pension contributions hinder innovation? Empirical evidence

International Journal of Innovation Studies

Desheng Yin¹  Zehui Wang²  Haizhi Wang³  Hao Shen³ 

[1] School of Economics, East China Normal University, 3663 N. Zhongshan Road, Shanghai, 200062, China;Software College of Northeastern University, 500 Wisdom St, Hunnan New District, Shenyang, Liaoning, 110169, China;Stuart School of Business, Illinois Institute of Technology, 565 W Adams Street, Chicago, IL, 60661, USA;

关键词: Pension;    Mandatory contribution;    Innovation;   

DOI  :  

来源: DOAJ

【 摘 要 】

This paper empirically investigates the effect of mandatory pension contributions on firm innovation. We find that firms with mandatory contributions experience a decline in their innovation output. This effect is stronger for firms with financial constraints, more short-term institutional investors, higher levels of managerial short-termism. We also document that mandatory pension contributions result in a reduction in firm research and development expenditures and an increase in firm debt-to-asset ratio. Moreover, we report that firms with mandatory contributions increase their alliance activities to pursue innovation with external partners.

【 授权许可】

Unknown