Do social insurance contribution rates affect firms’ investment in innovation?-Based on the empirical analysis of listed companies in Beijing

DOI

10.2991/978-94-6463-459-4_124How to use a DOI?

Keywords

Pension insurance contribution rates; Enterprise innovation inputs; fixed effects model; Beijing Listed Companies

Abstract

Facing the burden of social insurance costs and innovation challenges faced by firms during China's economic transformation, this paper focuses on the Comprehensive Program for Reducing Social Insurance Premium Rates, which will be implemented in 2019, and examines its potential impact on firms’ investment in innovation. Based on the panel data of 317 listed companies in Beijing from 2018 to 2022, this paper analyzes the impact of pension insurance contribution rate adjustment on enterprises’ innovation investment through two-way fixed effect model. The results of the study reveal that under China's current social insurance investment, the incentive effect of social security contributions is greater than the cost effect, and a reasonable increase in social security contributions will “force” enterprises to expand their R&D investment, and there is a certain degree of heterogeneity in the response of different types of enterprises’ innovation investment to social security contributions. The findings of this paper are important for understanding the impact of social insurance policy adjustments on firms’ innovative behavior, which is conducive to the government's formulation of more effective social security policies to promote the optimization of economic structure and the enhancement of firms’ efficiency.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zeyi He
PY  - 2024
DA  - 2024/07/23
TI  - Do social insurance contribution rates affect firms’ investment in innovation?-Based on the empirical analysis of listed companies in Beijing
BT  - Proceedings of the 2024 9th International Conference on Social Sciences and Economic Development (ICSSED 2024)
PB  - Atlantis Press
SP  - 1116
EP  - 1122
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-459-4_124
DO  - 10.2991/978-94-6463-459-4_124
ID  - He2024
ER  -