How Does Local Industrial Policy Affect the Innovation Behavior of Enterprises?——Based on the Mechanism Analysis of CEO Short-Termism
Firm innovation is a practical requirement for China's innovation-driven economic development and a critical driver of high-quality economic growth.Using data from A-share listed companies in China from 2011 to 2020,this study employs a difference-in-differences model to examine the impact of local industrial policies on firms'innovation behavior and the underlying mechanisms.The results show that:(1)Local in-dustrial policies positively impact firms'innovation behavior,but this effect is primarily reflected in strategic rather than substantive innovation.(2)Local industrial policies influence strategic innovation through executives'myopia,executives'short-term focus induces firms to prioritize quantity over quality in their innova-tion efforts.(3)Compared to state-owned enterprises,the influence of local industrial policies on strategic in-novation is more pronounced in private firms.Therefore,when formulating local industrial policies,it is essen-tial to focus on high-quality development,implement differentiated incentive measures,fully mobilize firms'in-novation enthusiasm,enhance management's ability to access policy information,alleviate information asymme-try between governments and firms,and guide management to make substantive innovation investment decisions aligned with long-term corporate growth in response to industrial policies.
local industrial policyenterprise innovation behaviorCEO short-termismdifference-in-difference model
万方数据
