What the study found
The study found that initial public offerings (IPOs) change how economic policy uncertainty (EPU, uncertainty about government economic policy) relates to private-sector firms’ R&D investment in China. IPOs were linked to more active R&D investment under high EPU, but they also had an indirect discouraging effect under high EPU through stronger political connections.
Why the authors say this matters
The authors conclude that policymakers should avoid market intervention and prevent listed firms from developing strong political connections. The study suggests that listing status matters for how firms respond to policy uncertainty.
What the researchers tested
The researchers used data from both listed and never-listed private-sector firms in China. They examined the causal impact of listing on the relationship between EPU and R&D investment.
What worked and what didn't
The results indicate two opposing effects. IPOs directly caused private-sector firms to take a more active attitude toward R&D investment under high EPU, but IPOs indirectly discouraged that behavior under high EPU because listed firms gained greater political connections.
What to keep in mind
The abstract does not describe additional limitations or caveats beyond the scope of the data and analysis reported here.
Key points
- IPOs changed the relationship between economic policy uncertainty and R&D investment in Chinese private-sector firms.
- Under high EPU, IPOs directly led firms to pursue R&D more actively.
- Under high EPU, IPOs also indirectly discouraged R&D because listed firms gained stronger political connections.
- The researchers compared listed and never-listed private-sector firms in China.
- The authors say policymakers should avoid market intervention and prevent strong political connections among listed firms.
Disclosure
- Research title:
- Listing changes how policy uncertainty affects R&D investment
- Authors:
- Go Yano, Maho Shiraishi, Yimeng Zhang, Xiao Zhang
- Institutions:
- Kyoto University, The University of Kitakyushu
- Publication date:
- 2026-04-06
- OpenAlex record:
- View
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