The Impact of Introducing Strategic Investors by Private Placement on Enterprise Innovation
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In this paper, targets of the private placement are classified into three categories, namely strategic investors, financial investors, and other investors, according to the criteria of whether the investors are involved in the management of enterprises. The fixed effect model is applied to test the impact of introducing strategic investors on the innovation of listed enterprises in China from 2006 to 2016. The results show that (1) the introduction of strategic investors in the private placement is beneficial to the improvement of enterprise innovation ability, especially in the quality of enterprise innovation; (2) the introduction of financial investors in the private placement harms the quality of enterprise innovation, and other investors introduced in it have no significant impact on enterprise innovation ability; (3) different targets of private placement have different effects, and its impact on enterprise innovation ability is limited, that is, the short-term impact within one year is more significant.
Private placement; Strategic investors; Financial investors; Enterprise innovation