Corporate Risk-Taking, Innovation Efficiency, and High-Quality Development: Evidence from Chinese Firms

Facing the increasingly complex and uncertain external environment, the reasonable control of investment risk is the key to realizing the sound operation and high-quality development of enterprises. Based on the innovation perspective, this paper takes A-share non-financial listed companies from 200...

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Bibliographic Details
Published inSystems (Basel) Vol. 12; no. 5; p. 154
Main Authors Wu, Yongxia, Hu, Haiqing, Xue, Meng
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.05.2024
Subjects
Behavior
Capital expenditures
Corporate governance
corporate risk-taking
Decision making
Efficiency
Heterogeneity
high-quality development
innovation efficiency
innovation input
innovation output
Innovations
Investments
Knowledge management
Productivity
Profits
R&D
Research & development
Risk management
Small & medium sized enterprises-SME
Social exchange theory
Volatility
China
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Summary:Facing the increasingly complex and uncertain external environment, the reasonable control of investment risk is the key to realizing the sound operation and high-quality development of enterprises. Based on the innovation perspective, this paper takes A-share non-financial listed companies from 2007 to 2021 as the research sample to explore the impact of the corporate risk-taking level on the high-quality development of enterprises and examines the transmission mechanism of the relationship between the two from the perspectives of innovation efficiency, innovation input, and innovation output. It is found that enterprise risk-taking significantly inhibits the high-quality development of enterprises, by reducing innovation efficiency; innovation efficiency plays a mediating role in the influence of the relationship between the two, which is mainly due to the fact that enterprise risk-taking increases the innovation inputs of enterprises but reduces the innovation outputs of enterprises, and then reduces the innovation efficiency of enterprises and inhibits the high-quality development of enterprises. This heterogeneity study finds that the inhibitory effect of corporate risk-taking on the high-quality development of firms is more pronounced among manufacturing firms, small-scale firms, and firms with higher capital intensity. The findings of this study provide both guidance to help enterprises to reduce risky investment decision-making behaviors and experience for regulators to effectively promote the formulation of policies related to the high-quality development of the real economy.
ISSN:2079-8954
2079-8954
DOI:10.3390/systems12050154