Financial slack and firm performance of SMMEs in China: Moderating effects of government subsidies and market-supporting institutions

How does financial slack affect the firm performance of small and medium-sized manufacturing enterprises (SMMEs)? By integrating the literature on financial slack and the institutional perspective, we predict the following: financial slack positively affects the firm performance of SMMEs; research and development (R&D) investment mediates the effect of financial slack on firm performance; and government subsidies and market-supporting...