Financial Regulation,Firm Credit Size And Innovation Input

The root of China’s economy towards high-quality development is innovation,and enterprise R&D investment,as the core driving force of innovation of micro subjects,is the main way to enhance innovation competitiveness.Increasing enterprise innovation investment helps enterprises’ long-term development,value enhancement and profitability,and works under the guidance of innovation-driven development strategy.China’s independent innovation capacity is relatively insufficient to become the core driving force to support sustained high-quality economic development,compared with developed countries,China’s enterprises invest very little in R & D funding,and the problem of weak technological innovation capacity is more prominent.The Outline of the National Medium-and Long-Term Science and Technology Development Plan(2006-2020)promulgated and implemented by the State Council points out the need to enhance independent innovation capability and build an innovative country.The high risk and long cycle of innovation activities require a large amount of continuous capital investment,and the endogenous financing of enterprises can hardly meet all the funds they need,so the R&D and innovation of enterprises depend on stable and continuous external financing,mainly through credit financing to obtain more funds,however,the credit level is too high,the risk of bankruptcy increases overlapping with the problem of principal-agent,and the profit-seeking nature of capital makes business operators more inclined to high profit Short-term interests,capital flows and preferences are not conducive to enterprise development and financial stability,and the brutal growth of various financial sectors and the "de-realization to deficiency" of real enterprises will cause structural imbalance in the economy.Financial regulation will curb enterprises from seeking short-term benefits by increasing leverage,reduce the squeeze of excessive leverage on real investment,and influence enterprises’ technological innovation by affecting their preferences for credit and capital use.This paper selects 1450 companies,such as except ST and finance,as a sample from 2017-2021,and finds through empirical research that financial regulation affects the channel path of corporate innovation investment by limiting corporate credit size,and embeds corporate life cycle for heterogeneity test,and finds through empirical research that: 1)Financial regulation promotes corporate innovation investment.2)Financial regulation promotes firms’ innovation investment by influencing firms’ credit size and preference of capital use and limiting firms’ short-sighted behavior.3)The role of financial regulation in influencing firms’ innovation investment is most effective in growth stage firms.Financial regulation promotes real economic growth by directing enterprises to those micro production behaviors that are conducive to high-quality economic development,so that more funds flow to enterprises’ R&D investment and technological innovation activities,which generate economic benefits.