Property rights protection,financial access and corporate R&D: Evidence from a large representative sample of Chinese firms

The motivation of this paper is to explore why corporate R&D investments are significantly different under similar institutional backgrounds. Our estimates not only confirm a positive relationship from property rights protection (hereafter PRP) to corporate R&D, but also show the mediation effect of financial access on this positive relationship. Thus, we use financial access to explain the variant effect of PRP on corporate R&D. With exogenous instrumental variables, our estimates are robust to endogeneity issues.