Enterprise Financialization?Financing Constraints And Corporate Innovation

As Chinese economy enters low and medium-speed growth,innovation has become an important driving force to support industrial transformation and upgrading.Enterprises invest great investment in innovation activities,which have long periods and great uncertainties.Some listed companies have chosen the path of financialization to alleviate financing constraints,drive their accumulation of industrial capital,and promote transformation and upgrading.However,whether the result of corporate financialization is out of reality,or whether it has promoted the accumulation of capital and innovation has become an urgent academic issue.This paper uses empirical research methods,based on the diversified management theory,information asymmetry theory,prioritized financing theory and reputation theory,to systematically analyze the theoretical mechanism of the enterprises financialization affecting innovation,and selects the data of A-share listed companies from 2010 to 2018 as the research sample.Whether the company allocates financial assets is used to measure enterprise financialization.Enterprise innovation is measured by the sum of the number of invention patents,utility model patents and design patent applications filed by the enterprise in that year plus 1 and take the logarithm,and the company's financing constraints are measured by the ratio of the company's net cash flow from operating activities to total assets at the end of the period.It empirically examines the relationship between financialization of corporate entities,financing constraints,and corporate innovation.The results found that: corporate financialization can achieve the promotion of corporate innovation;financing constraints act as an intermediary mechanism in the promotion of corporate financialization to corporate innovation;It found that the financing constraints of state-owned companies as an intermediary effect between corporate financialization and corporate innovation does not make sense,and the financing constraints of private companies make sense as an intermediary mechanism between corporate financialization and corporate innovation.Finally,based on the empirical research results of this article,relevant policy recommendations are put forward.