The Impact Of Financialization On Corporate Innovation

General Secretary Xi Jinping clearly pointed out that "finance should take the service of the real economy as the starting point and the foothold." In the report of the19 th National Congress,General Secretary Xi Jinping once again pointed out: "Deepening the reform of the financial system and enhancing the economic ability of financial services." Implementing the spirit of the 19 th National Congress of the Communist Party of China and the National Financial Work Conference,and guiding the return of finance to the original source of the real economy,it is an important task of the current financial work.Deepening the reform of the financial system and enhancing the economic ability of financial services will require the participation of all.The development of the real economy requires not only funds,but also the continuous improvement of innovation capabilities.Innovation is the first driving force for development,and enterprise innovation is the main driving force for building an innovative country.In the background of the current mass entrepreneur innovation,this paper aims to research the impact of financialization on the innovation ability in terms of the phenomenon of enterprises in the long-term allocation of funds to financial assets and the lack of innovation ability of China's non-financial enterprises,which helps our government restrain the excessive financial of non-financial enterprises in China and promotes enterprises to improve their innovation capabilities and high-quality economic development.It has certain guiding significance,leading to the Chinese economic healthy development.Based on this,this paper uses the 2007-2017 Shanghai and Shenzhen A-share non-financial and real estate listed companies as a sample,which examines the impact of non-financial corporate financialization on corporate innovation.Since the patent data conforms to the Poisson distribution and the data variance is much larger than the mean value,this paper uses Poisson regression and negative binomial regression to test,controling the industry and annual dummy variables.In order to avoid over-estimation of Z statistics,this paper uses cluster-level robust standard error at the enterprise level.This paper first verifies the crowding-out effect of financialization ofnon-financial enterprises on enterprise innovation,and then introduces two adjustment variables of financial development level and company scale,focusing on the short-sighted effect of managers and arbitrage mechanism between financial degree and enterprise innovation.At last,studying the impact of financialization on business performance.The results of this paper show that:(1)the financialization of non-financial enterprises has a “squeezing effect” on enterprise innovation;(2)the heterogeneity of financialization types,compared with short-term financial assets,the long-term financial asset investment has more crowding effect on enterprise innovation.Significant;(3)In areas with high levels of financial development,financialization has a stronger inhibitory effect on corporate innovation;(4)compared with small-scale enterprises,the degree of financialization of large-scale enterprises has a more significant effect on corporate innovation;The short-sighted effect and arbitrage mechanism of managers between non-financial corporate financialization and corporate innovation exist;(6)Non-financial corporate financialization can improve short-term business performance.After considering the sample self-selection bias,endogeneity and using different indicators to measure enterprise innovation,the results of this paper remain stable.Finally,this paper proposes policy recommendations from the three levels of enterprises,regulatory authorities and government.It is believed that the management,the regulatory authorities and the government should work together to maintain the development-driven development strategy and vigorously promote the supply-side structural reforms and guide the Chinese economy.Towards the real,create a good financial market atmosphere.