Government subsidy and institutional entrepreneur´s risk taking

Emerging economics are now paying more and more attention on entrepreneurship. Some institutional entrepreneurs in these countries are trying to seek the occurring opportunity. Debuting on NEEQ in China is a good example of this. Using the data from the annual report of the listed firms in NEEQ, we investigate the relation between political connection, government subsidy, risk taking (using R&D intensity to measure) and firm performance (ROA). When developing our hypotheses, we refer to institutional theory, resource dependence theory, and some other theoretical perspectives. By connecting theory with the practice of the firms in our sample, we seek to get deeper thoughts about institutional entrepreneurship. Implications to practice, especially entrepreneurship in emerging economics such as China are then discussed.