The Effect of Financing on Firm Innovation: Multiple Case Studies on Chinese Manufacturing Enterprises

This article investigates the effects of financing on innovation through multiple case studies of Chinese manufacturers: M&G, Haier, SAIC Motor, and Sifang. Although financing enables firms to access more capital and nonfinancial resources that can fuel innovation in technology, management, cultural, and business models, it also forces firms to adhere to stricter disclosure requirements and some myopic incentives that may constrain innovation....