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The Real Effects of Commercial Insurance: The Case of Corporate Innovation

Jinlan Huang et al.

Journal of Business Finance & Accounting2026https://doi.org/10.1111/jbfa.70050article
AJG 3ABDC A*
Weight
0.50

Abstract

This study examines the relationship between commercial insurance coverage and corporate innovation activities. Using firm‐level data from 2010 to 2019 in China, we find that the coverage of commercial insurance is positively associated with both the quantity and quality of corporate innovation. We further identify three plausible channels through which this effect operates: the risk‐sharing channel, the financing channel, and the corporate governance channel. Notably, our results show that firms with higher levels of commercial insurance coverage are more inclined to undertake risky innovation projects. Additionally, the positive relation between corporate insurance and the quantity and quality of innovation is particularly strong for firms in high‐tech industries, those facing significant financing needs and greater financial constraints, as well as those with weaker corporate governance. Our findings offer new insights into how the development of the commercial insurance market can promote economic growth by fostering corporate innovation.

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https://doi.org/https://doi.org/10.1111/jbfa.70050

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@article{jinlan2026,
  title        = {{The Real Effects of Commercial Insurance: The Case of Corporate Innovation}},
  author       = {Jinlan Huang et al.},
  journal      = {Journal of Business Finance & Accounting},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/jbfa.70050},
}

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The Real Effects of Commercial Insurance: The Case of Corporate Innovation

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.