Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policy

This paper employs patent collateral data from China’s State Intellectual Property Office and finds that patent collateral policy increases the use of patents as collateral and corporate debt financing; further, patent insurance policy enhances the effect of patent collateral policy. However, these...

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Main Authors: Xiaoxi Li, Qinger Zhong, Guochao Yang, Pingui Rao
Format: Article
Language:English
Published: Taylor & Francis Group 2024-10-01
Series:China Journal of Accounting Studies
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/21697213.2025.2520215
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author Xiaoxi Li
Qinger Zhong
Guochao Yang
Pingui Rao
author_facet Xiaoxi Li
Qinger Zhong
Guochao Yang
Pingui Rao
author_sort Xiaoxi Li
collection DOAJ
description This paper employs patent collateral data from China’s State Intellectual Property Office and finds that patent collateral policy increases the use of patents as collateral and corporate debt financing; further, patent insurance policy enhances the effect of patent collateral policy. However, these policies only lead to an increase in corporate short-term debt. Additionally, we document a stronger effect for cities that integrate an effective government and an efficient market, cities where governments provide guarantees to firms, firms with high-quality patents, and financial constrained firms. As a result, increases in corporate short-term debt resulting from patent collateral policy and patent insurance policy lead to higher patent output in the short run, rather than in the long run.
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spelling doaj-art-c57d6b546e32459a93bd0d7d0d2fc7802025-08-20T02:39:25ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212024-10-0112483986010.1080/21697213.2025.2520215Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policyXiaoxi Li0Qinger Zhong1Guochao Yang2Pingui Rao3School of Management, Jinan University, Guangzhou, ChinaSchool of Management, Jinan University, Guangzhou, ChinaInstitute of New Institutional Accounting, School of Accounting, Zhongnan University of Economics and Law, Wuhan, ChinaSchool of Management, Jinan University, Guangzhou, ChinaThis paper employs patent collateral data from China’s State Intellectual Property Office and finds that patent collateral policy increases the use of patents as collateral and corporate debt financing; further, patent insurance policy enhances the effect of patent collateral policy. However, these policies only lead to an increase in corporate short-term debt. Additionally, we document a stronger effect for cities that integrate an effective government and an efficient market, cities where governments provide guarantees to firms, firms with high-quality patents, and financial constrained firms. As a result, increases in corporate short-term debt resulting from patent collateral policy and patent insurance policy lead to higher patent output in the short run, rather than in the long run.https://www.tandfonline.com/doi/10.1080/21697213.2025.2520215Institutional innovation of patent financingpatent collateralpatent insurancecorporate debt financing
spellingShingle Xiaoxi Li
Qinger Zhong
Guochao Yang
Pingui Rao
Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policy
China Journal of Accounting Studies
Institutional innovation of patent financing
patent collateral
patent insurance
corporate debt financing
title Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policy
title_full Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policy
title_fullStr Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policy
title_full_unstemmed Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policy
title_short Does institutional innovation of patent financing ease corporate financing woes? Evidence from patent collateral and patent insurance policy
title_sort does institutional innovation of patent financing ease corporate financing woes evidence from patent collateral and patent insurance policy
topic Institutional innovation of patent financing
patent collateral
patent insurance
corporate debt financing
url https://www.tandfonline.com/doi/10.1080/21697213.2025.2520215
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