Research On The Impact Of Manufacturers' Financialization On Technical Innovation

Currently,China's manufacturing industry is in the critical period of transformational upgrade.Under the shock of internal and external unfavorable factors,the profit rate of manufacturing enterprises has been going down continuously and some medium and low-end manufacturers are faced with relatively big pressure for survival.At the same time,after the domestic market has experienced many years of development,financial products and instruments have cropped up one after another and the return on financial asset is relatively high.Under such a background,some manufacturers have turned to invest a lot of their capital in the financial market and purchase various types of financial asset to obtain high yield.If things go on like this for a long period,the financialization level of manufacturers will constantly rise.On the other hand,as the core impetus of corporate development,innovation also requires a lot of input of R&D capital.Therefore,exploring the impact of financialization on manufacturers has become an issue that is worth studying.This thesis takes the data of listed companies in the manufacturing industry from2013 to 2018 as the research sample,and adopts fixed effect model to empirically analyze the impact of corporate financialization on technical innovation.Meanwhile,the thesis introduces the perspective of senior manager incentive and examines the regulating effect of senior manager wage incentive and senior manager stock right incentive in the relationship between the two respectively.The empirical results show:(1)The financial asset held by manufacturers exerts a significant negative impact on their technical innovation and generates“crowding-out”effects on R&D innovation.(2)The short-term financial asset held by manufacturing companies does not exert a significant impact on technical innovation while holding long-term financial asset exerts a negative impact on technical innovation,displaying significant“crowding-out”effects.(3)The wage incentive measures adopted by manufacturing companies on senior managers can significantly intensify the inhibiting effects of corporate financialization on technical innovation while stock right incentive measures adopted on senior managers can significantly weaken the inhibiting effectsof corporate financialization on technical innovation.(4)Compared with state-owned enterprises,the financialization of non-state-owned enterprises exerts a more apparent impact on innovation.The short-term financial asset held by both state-owned enterprises and non-state-owned enterprises does not exert a significant impact on technical innovation.Compared with state-owned enterprises,the long-term financial asset held by non-state-owned enterprises exerts a more apparent negative impact on technical innovation.The senior manager wage incentive offered by state-owned enterprises will significantly intensify the inhibiting effects on technical innovation while the senior manager stock right incentive measures adopted by non-state-owned enterprises will significantly weaken the inhibiting effect of corporate financialization on technical innovation.Therefore,manufacturing enterprises should correctly understand capital financialization behaviors and their impact,constantly improve corporate governance system,and formulate rational senior manager incentive measures to increase their technical innovation capacity.Meanwhile,governments and supervision departments should also strengthen financial supervision over manufacturing companies.On the one hand,they should actively guide such financial institutions as commercial banks to provide financial support to corporate innovation.On the other hand,they should continuously press ahead with multi-tiered capital market building to create a favorable innovation eco-environment for manufacturing companies.