Published in:Asian Finance Association (AsianFA) 2016 Conference
Extent:
1 Online-Ressource (37 p)
Language:
English
DOI:
10.2139/ssrn.2720314
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 30, 2016 erstellt
Description:
Real estate bubbles can increase collateral value, thus relaxing financial constraints, which might spur innovation. However, they might also crowd out R&D expenditures, thus stifling corporate innovation. This paper shows that real estate prices negatively affect both corporate R&D and patents in China, suggesting a strong crowding out effect. We further provide suggestive evidence that managerial myopia might partly account for the crowding out effect. Our study illustrates the innovation cost of a booming real estate market