Peer effect of enterprise innovation: Empirical evidence from China

Abstract

Innovation investment is crucial to enterprise development and economic growth. As peer enterprises face similar market environment and development prospects, they pay attention to the innovation activities of peer enterprises in the industry because of economic rationality or the idea of seeking advantages and avoiding disadvantages. This paper aims to investigate the interaction and channel of enterprise innovation behavior of peer effect based on the data of Chinese share-listed enterprises from 2010 to 2021. The results show that peer effect exists in the innovation behavior of enterprises. We also provide evidence that managerial ability is the mechanism of the peer effect of enterprise innovation. In addition, we find that small-scale enterprises are more likely to be affected by the innovation behavior of peer enterprises compared with large enterprises. More importantly, we reveal that economic policy uncertainty significantly negatively regulates the peer effect of enterprise innovation.JEL classificationG30, G31, O31

Heterogeneous Blockholders and Enterprise Innovation: Evidence From the Mixed-Ownership Reform in China

“…Moreover, the coexistence of heterogeneous blockholders can use their advantages to seek more innovative resources for the enterprise, thus better promoting corporate innovation. At the same time, the mixed ownership reform is always conducted between the same industry, and peer effect will promote the innovation behavior of enterprises (Liu et al, 2022). The research hypothesis H3 is proposed: H3: Heterogeneous blockholders promote enterprise innovation by acquiring more resources, that is to say, financial resources play an intermediary role between them.…”