Internal capital allocation in IPOs and corporate innovation: The moderating role of political connections

被引：2
|
作者：
Tang, Jinghua [1 ]
Liu, Qigui [2 ]
机构：
[1] Jiangxi Univ Finance & Econ, Sch Finance, Nanchang, Jiangxi, Peoples R China
[2] Ningbo Univ, Business Sch, Ningbo, Peoples R China
来源：
ACCOUNTING AND FINANCE | 2022年 / 62卷 / 05期
基金：
中国国家自然科学基金;
关键词：
Firm innovation; Internal capital allocation; IPOs; Political connections; DARK SIDE; FINANCE; PERFORMANCE; TIES; EMBEDDEDNESS; GOVERNANCE; MARKETS; BOARDS; GROWTH; CEOS;
D O I：
10.1111/acfi.12982
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We explore the effect of initial public offering (IPO) capital allocation on corporate innovation. We document that IPOs enhance corporate innovation through allocation of internal capital to innovative projects. While political connections moderate the IPO-innovation relation in that connected firms allocate less IPO capital to innovative projects and are more likely to reallocate their resource from innovative to non-innovative projects. Resource allocation to innovative projects results in better post-IPO performance, especially in non-connected firms. Overall, this study identifies intra-firm capital allocation as an important factor that contribute to firm innovation and the distortion of resource allocation linked to political ties.
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页码：4663 / 4693
页数：31
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