This study explores the impact of government informatization construction on corporate digital technology innovation. It uses the integration of informatization and industrialization pilot zones in China as a quasi-natural experiment of government informatization construction, and construct a difference-in-differences model. Based on a sample of Chinese A-share corporations from 2007 to 2021, the empirical findings reveal that government informatization construction significantly promotes corporate digital technology innovation by enhancing corporate attention to digital technologies and reducing transaction costs. Furthermore, the positive impact is (...) more pronounced in the southern regions and regions with stronger intellectual property protection and high-tech and digital economy industries, as well as mature-stage corporations and corporations with higher levels of digital technology innovation. These findings provide valuable insights for implementing informatization policies and facilitating corporate digital technology innovation. (shrink)

Studies show that research and development may not always benefit entrepreneurial firms. This paper focuses on the double-edged effect of R&D activities on attracting institutional investment in entrepreneurial firms. Based on a panel dataset of 700 listed entrepreneurial firms in ChiNext, we document: an inverted-U relationship between R&D intensity and future institutional investment, which we argue is evidence that institutional investors are concerned about R&D overinvestment; an inverted-U relationship between R&D capitalization and future institutional investment, which we argue shows suspicion (...) of the institutional investors towards high R&D capitalization. Furthermore, by splitting institutional investors into venture capitals and non-venture capitals, we confirm that VCs have higher acceptance of both R&D intensity and capitalization as VCs have more expertise to alleviate a certain level of risks. (shrink)