Using a unique and rich database of high-technology firms in China, we show that effective enforcement of intellectual property rights at the provincial level is critical in encouraging financing and investing in R&D. Better enforcement of intellectual property (IP) rights positively affects...

Financing of and investing in Ramp;D are prone to risks of appropriation by competitors, information asymmetry, and agency problems. Although legal protection of intellectual property (IP) rights at the national level is necessary to encourage investing in Ramp;D, we show that the effective...

We investigate the impact of social capital on three facets of foreign high-tech companies' investment in China: where to invest, which ownership structure to implement, and how much to invest in R&D. We find local social capital in China is an important factor in these investment decisions....

Investment by foreign firms in a host country is a good setting to study the two concepts in social psychology: cultural biases among foreign companies, and social capital among regions in the host country. We choose to investigate investment by foreign high tech firms in China. We find both...

We investigate the role of social capital and cultural biases in investment by foreign high-tech firms in China. We find social capital of provinces in the host country, social capital of the foreign company's home country, and the cultural difference between the two countries are important...