Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet Courts
This paper examines the impact of Internet courts on firm innovation, emphasizing the role of digital judicial protection. Using a staggered difference-in-differences (DID) approach and data from Chinese listed companies, we find that the establishment of Internet courts significantly enhances firm...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
SAGE Publishing
2025-06-01
|
| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440251340457 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849430245075058688 |
|---|---|
| author | Huaxing Wang Weiwei Li Liangcong Fan Yang Feng |
| author_facet | Huaxing Wang Weiwei Li Liangcong Fan Yang Feng |
| author_sort | Huaxing Wang |
| collection | DOAJ |
| description | This paper examines the impact of Internet courts on firm innovation, emphasizing the role of digital judicial protection. Using a staggered difference-in-differences (DID) approach and data from Chinese listed companies, we find that the establishment of Internet courts significantly enhances firm innovation, a result robust across multiple tests. Mechanism analysis reveals that Internet courts promote innovation by increasing firms’ willingness to innovate and accelerating digital transformation. Heterogeneity analysis highlights stronger effects in Internet-related services, industrial digitization sectors, private firms, and firms facing high litigation risks, likely due to their greater reliance on digital justice systems. These findings provide novel evidence linking digital justice systems to firm innovation and offer actionable insights for fostering innovation through judicial reforms in the digital era. JEL: K41, O32, P37. |
| format | Article |
| id | doaj-art-317e18d6ca5f4bf8a5ba1f7b47800b51 |
| institution | Kabale University |
| issn | 2158-2440 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj-art-317e18d6ca5f4bf8a5ba1f7b47800b512025-08-20T03:28:05ZengSAGE PublishingSAGE Open2158-24402025-06-011510.1177/21582440251340457Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet CourtsHuaxing Wang0Weiwei Li1Liangcong Fan2Yang Feng3Zhejiang University, Hangzhou, ChinaZhejiang University, Hangzhou, ChinaZhejiang University, Hangzhou, ChinaZhejiang University, Hangzhou, ChinaThis paper examines the impact of Internet courts on firm innovation, emphasizing the role of digital judicial protection. Using a staggered difference-in-differences (DID) approach and data from Chinese listed companies, we find that the establishment of Internet courts significantly enhances firm innovation, a result robust across multiple tests. Mechanism analysis reveals that Internet courts promote innovation by increasing firms’ willingness to innovate and accelerating digital transformation. Heterogeneity analysis highlights stronger effects in Internet-related services, industrial digitization sectors, private firms, and firms facing high litigation risks, likely due to their greater reliance on digital justice systems. These findings provide novel evidence linking digital justice systems to firm innovation and offer actionable insights for fostering innovation through judicial reforms in the digital era. JEL: K41, O32, P37.https://doi.org/10.1177/21582440251340457 |
| spellingShingle | Huaxing Wang Weiwei Li Liangcong Fan Yang Feng Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet Courts SAGE Open |
| title | Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet Courts |
| title_full | Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet Courts |
| title_fullStr | Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet Courts |
| title_full_unstemmed | Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet Courts |
| title_short | Does Digital Justice Contribute to Firm Innovation? Evidence from China’s Internet Courts |
| title_sort | does digital justice contribute to firm innovation evidence from china s internet courts |
| url | https://doi.org/10.1177/21582440251340457 |
| work_keys_str_mv | AT huaxingwang doesdigitaljusticecontributetofirminnovationevidencefromchinasinternetcourts AT weiweili doesdigitaljusticecontributetofirminnovationevidencefromchinasinternetcourts AT liangcongfan doesdigitaljusticecontributetofirminnovationevidencefromchinasinternetcourts AT yangfeng doesdigitaljusticecontributetofirminnovationevidencefromchinasinternetcourts |