Empirical Study On The Impact Of Banking Deregulation On Enterprise Innovation

In today’s society,innovation is a continuous driving force for a country’s economic growth and an inexhaustible source for leading Chinese enterprises to achieve transformation and upgrading.However,innovation activities cannot be carried out without a large amount of financial support.Although venture capital and private equity companies play an increasingly important role in innovation,Banks are still the main source of funds for innovation activities,and enterprise innovation will be more restricted by the development of the banking industry.Therefore,the relationship between the banking system and enterprise innovation,and this impact are not only related to the implementation of China’s innovation-driven development strategy,but also to the direction of China’s bank-dominated indirect financing system reform.China’s financial industry continues to deepen reform,among which the trans-regional operation control has been wavering.In 2009,the China banking regulatory commission(CBRC)issued document 143,which relaxed the market access conditions for small and medium-sized Banks’ branches in other places.This paper is based on bank access to explore the influence of banking reform and innovation of the enterprise:Firstly,the paper analyzes the motivation of interderegulation of small and medium-sized Banks in China,then,it makes a theoretical analysis on the banking interderegulation and enterprise innovation,on the basis of the policy that Banks in China cross-regional business deregulation that was reasonably natural experiment,poisson distribution model is established,using difference-in-difference model,as well as panel data of 675 smes and 511 gem listed companies,explores the banking market access to regulatory policy impact on enterprise innovation ability.The research results show that:(1)the deregulation policy of interderegulation operation by banks promotes the innovation level of enterprises to a certain extent;(2)in addition,from the perspective of dynamics,the innovation effect of enterprises is first strengthened and then weakened,so as to develop in this trend;(3)moreover,the promotion effect is heterogeneous,and the innovation level of the larger and mature non-state-owned manufacturing industry is more sensitive to the deregulation policy of the banking industry;(4)and further mediation mechanism test showedthat the bank of cross-regional operation control to relax the policy impact on enterprise innovation mechanism is that bank inter-district business banking market concentration degree,reduce the area multi-level market competition gradually perfect,to expand the supply of credit and reduces the enterprise financing costs,to ease the small and medium-sized enterprise financing constraints,promote enterprise innovation.Finally,based on the above research conclusions,this paper proposes policy suggestions for policy makers and small and medium-sized commercial Banks.For policy makers,gradually reduce government financial regulation,break banking monopoly and support independent innovation of enterprises.To guide the banking market to form a differentiated competitive pattern,each commercial bank should clearly define its own positioning and find a suitable cross-regional development mode.