Unified Administration Reform of Court Fiscal Spendings and Firm Innovation in China
Firms’ persistent innovation is an important engine of China’s economic growth, and judicial quality plays a critical role in guaranteeing firm innovation. As a crucial part of China’s judicial reform, the central government has deliberated and promoted the province level unified administration reform of court fiscal spendings. Using the natural experiment setting provided by the reform, this paper examines the impact of the improvement of judicial quality brought about by the reform on corporate innovation. The results show that after the implementation of the provincial-level unified administration reform of court fiscal spendings, the intensity of R&D investment by local enterprises has increased significantly, that is, the improvement of judicial quality can promote enterprise innovation. At the same time, the effect of the reform depends on the nature of corporate property rights and corporate size. To be specific, in private enterprises and small and medium-sized enterprises, the improvement of judicial quality after the reform has a more significant role in promoting enterprise innovation. The results of the mechanism analysis show that alleviating financing constraints and improving the level of local market competition are mechanisms through which the reform promotes local enterprise innovation. Further research finds that compared with non-high-tech industries, the reform has more significant impact on high-tech industry enterprises, and compared with areas with less intensified reform, the reform has a more significant role in promoting local enterprise innovation in areas with more intensified reform. This article expands the relevant research on the relationship between judicial system and corporate innovation, enriches the relevant research on the economic consequences of the administration system of courts from the perspective of the control over budgets, and provides theoretical support for further deepening the reform of the judicial system to improve judicial quality
Year of publication: |
2022
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Authors: | Qi, Wentao |
Publisher: |
[S.l.] : SSRN |
Subject: | China | Verwaltungsreform | Administrative reform | Öffentliche Ausgaben | Public expenditure | Innovation | Finanzpolitik | Fiscal policy |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 24, 2022 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014236035
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