Enhancing corporate innovation via patient capital: how analyst attention and research reports matter

Using 34,670 observations from Chinese A-share listed firms over the 2009–2024 period, this study investigates the impact of patient capital on corporate innovation and the moderating role of analyst attention and research reports. Employing two-way fixed-effects model with Driscoll-Kraay standard errors and 2SLS, we find that both relational debt and strategic equity significantly promote innovation. When the external market attention is low, the phenomenon of patient capital being idle will occur. Heterogeneity analysis shows that relational debt is more effective in non-SOEs, while strategic equity works better in SOEs. Strategic equity from corporate and independent investors also outperforms that from state-owned institutional investors. These findings suggest developing long-term credit markets for non-SOEs, guiding strategic equity towards SOEs, and improving the information environment.