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The Impact of Government R&D Support on SMEs Financial Growth: Evidence from China

Received: 15 August 2013     Published: 20 September 2013
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Abstract

This paper investigates the impact of government R&D support on financial growth of SMEs, and analyzes the significant different supportive effect for the enterprises with different nature of control rights. We take 516 listed companies from the SMEs’ board on Shenzhen stock market as sample, using the data from 2006 to 2011 and implementing the method of Propensity Score Matching to relieve the sample selection bias. The empirical results indicate that: On the whole, government R&D support can effectively improve the financial growth of SMEs, and demonstrates an 1-2 year-lagged-effect; the property of enterprises’ ultimate controller also has extraordinary impact on R&D supportive effect, financial growth of non-state-holding companies which have accepted R&D support will turn out to be more significant improvement, while that of the state-controlled enterprises have not been significantly enhanced in the short-term, or even fared-worse than the matched samples.

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 5)
DOI 10.11648/j.ijefm.20130105.11
Page(s) 205-214
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Government R&D Support, SMEs, Financial Growth, Propensity Score Matching

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  • APA Style

    Hongxing Peng, Yingmin Yu. (2013). The Impact of Government R&D Support on SMEs Financial Growth: Evidence from China. International Journal of Economics, Finance and Management Sciences, 1(5), 205-214. https://doi.org/10.11648/j.ijefm.20130105.11

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    ACS Style

    Hongxing Peng; Yingmin Yu. The Impact of Government R&D Support on SMEs Financial Growth: Evidence from China. Int. J. Econ. Finance Manag. Sci. 2013, 1(5), 205-214. doi: 10.11648/j.ijefm.20130105.11

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    AMA Style

    Hongxing Peng, Yingmin Yu. The Impact of Government R&D Support on SMEs Financial Growth: Evidence from China. Int J Econ Finance Manag Sci. 2013;1(5):205-214. doi: 10.11648/j.ijefm.20130105.11

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  • @article{10.11648/j.ijefm.20130105.11,
      author = {Hongxing Peng and Yingmin Yu},
      title = {The Impact of Government R&D Support on SMEs Financial Growth: Evidence from China},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {1},
      number = {5},
      pages = {205-214},
      doi = {10.11648/j.ijefm.20130105.11},
      url = {https://doi.org/10.11648/j.ijefm.20130105.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130105.11},
      abstract = {This paper investigates the impact of government R&D support on financial growth of SMEs, and analyzes the significant different supportive effect for the enterprises with different nature of control rights. We take 516 listed companies from the SMEs’ board on Shenzhen stock market as sample, using the data from 2006 to 2011 and implementing the method of Propensity Score Matching to relieve the sample selection bias. The empirical results indicate that: On the whole, government R&D support can effectively improve the financial growth of SMEs, and demonstrates an 1-2 year-lagged-effect; the property of enterprises’ ultimate controller also has extraordinary impact on R&D supportive effect, financial growth of non-state-holding companies which have accepted R&D support will turn out to be more significant improvement, while that of the state-controlled enterprises have not been significantly enhanced in the short-term, or even fared-worse than the matched samples.},
     year = {2013}
    }
    

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  • TY  - JOUR
    T1  - The Impact of Government R&D Support on SMEs Financial Growth: Evidence from China
    AU  - Hongxing Peng
    AU  - Yingmin Yu
    Y1  - 2013/09/20
    PY  - 2013
    N1  - https://doi.org/10.11648/j.ijefm.20130105.11
    DO  - 10.11648/j.ijefm.20130105.11
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 205
    EP  - 214
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20130105.11
    AB  - This paper investigates the impact of government R&D support on financial growth of SMEs, and analyzes the significant different supportive effect for the enterprises with different nature of control rights. We take 516 listed companies from the SMEs’ board on Shenzhen stock market as sample, using the data from 2006 to 2011 and implementing the method of Propensity Score Matching to relieve the sample selection bias. The empirical results indicate that: On the whole, government R&D support can effectively improve the financial growth of SMEs, and demonstrates an 1-2 year-lagged-effect; the property of enterprises’ ultimate controller also has extraordinary impact on R&D supportive effect, financial growth of non-state-holding companies which have accepted R&D support will turn out to be more significant improvement, while that of the state-controlled enterprises have not been significantly enhanced in the short-term, or even fared-worse than the matched samples.
    VL  - 1
    IS  - 5
    ER  - 

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Author Information
  • School of Accountancy, Central University of Finance and Economics, Beijing, China

  • School of Accountancy, Central University of Finance and Economics, Beijing, China

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