Topic:FirmDynamics of Hi-Tech Start-ups: Does Innovation Matter?

Speaker:Dongyang ZHANG is Assistant Professor with School of Economics,Capital University of Economics and Business, holding master degree and Ph.D.degree in Economics from Kyoto University, Japan, master degree and bachelordegree in Economics and bachelor degree in Science from Renmin University ofChina. The main research areas are: Corporate Governance, Corporate Finance andCorporate Innovation.In recent years, he haspublished more than a dozen papers in high-level magazines such as “Economic Modelling”,“Economics Letters”, “Economic Systems”, “Emerging Markets Finance and Trade”.

Time: 12:30-13:30,Wednesday, March 27, 2019

Venue:Room 913, Main Teaching Building in City Campus of CUFE

Moderator: AssistantProfessor Yumei GUO, the School of Finance at CUFE

Abstract: Innovation plays a vital role in corporate issues since it bringspotentially appreciable profits and shores up their statuses in certain fields,although it may also harness firms, especially smaller ones, with high survivalrisks. This concern brings forth our research topic: could innovation diminishfirms’ risk of failure? Our paper concentrates on hi-tech start-ups andcomplements existing firm dynamic studies by adopting a comprehensive annualsurvey dataset from a science park located in Beijing. Using a noveldiscrete-time proportional hazards model, and thanks to extensive dataavailable, we can take a deeper investigation into this topic. Our researchcomplies with most of the previous studies that show that the benefit frominnovativeness outweighs the cost and we solidify our conclusions byconsidering a few distinctive features existing in China’s economy.