Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)

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Capital Credit and Corporate Innovation: Evidence from Removing Minimum Capital Requirements

Authors
Yizhe Gu1, *
1Zhejiang University of Technology, No.18 Chaowang Road, Gongshu District, Hangzhou, China
*Corresponding author. Email: 3205189308@qq.com
Corresponding Author
Yizhe Gu
Available Online 22 December 2025.
DOI
10.2991/978-94-6463-916-2_42How to use a DOI?
Keywords
Subscribed capital system; Enterprise innovation; RMCR; Financing constraints; Resource allocation
Abstract

This study investigates the impact the capital credit on corporate innovation activities, focusing on firms in industries with high entry rates. We use removing minimum capital requirements(RMCR) as a quasi-natural experiment and find that in high entry rate industries, the implementation of RMCR significantly promotes corporate innovation. Mechanism tests indicate that this effect operates primarily by alleviating firms’ financing constraints and by improving resource allocation. We confirm the robustness of our results by clustering standard errors at alternative levels and by excluding data from the policy implementation year. Our findings enrich the literature on the economic consequences of the RMCR and provide new evidence on how institutional reforms shape firm-level innovation, with implications for ongoing business registration reforms and innovation-driven economic growth.

Copyright
© 2025 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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Volume Title
Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
22 December 2025
ISBN
978-94-6463-916-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-916-2_42How to use a DOI?
Copyright
© 2025 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.

Cite this article

risenwbib
TY  - CONF
AU  - Yizhe Gu
PY  - 2025
DA  - 2025/12/22
TI  - Capital Credit and Corporate Innovation: Evidence from Removing Minimum Capital Requirements
BT  - Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)
PB  - Atlantis Press
SP  - 382
EP  - 391
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-916-2_42
DO  - 10.2991/978-94-6463-916-2_42
ID  - Gu2025
ER  -