Research On The Impact Of Financialization Of Entity Enterprises On The Technological Innovation Ability

In recent years,the financialization trend of entity enterprises "derealization to virtuality" is extremely obvious,and the financialization of entity enterprises reflects the transformation of the capital and income occupation mode of entity enterprises in China,which is specifically manifested in the fact that the proportion of financial asset allocation in the total assets of entity enterprises is constantly increasing,and the proportion of financial asset income in the source of profits of entity enterprises is also increasing.To a certain extent,the financialization of real enterprises can have a positive effect on the real economy through the financial market,but when the financial capital is excessively accumulated,the development of the real economy is easy to be ignored.At the same time,the technological innovation ability of entity enterprises is still at a low level compared with that of the developed countries,and the core technological innovation ability of developed countries is much higher than that of China.Therefore,the development trend of the gradual deepening of the financialization of the real economy is not conducive to the transformation and upgrading development and innovative development of China’s real economy.Based on this,this paper first sorts out the relevant literature and theories on the financialization of entity enterprises,technological innovation capabilities and the impact of financialization of entity enterprises on technological innovation capabilities,then analyzes the impact mechanism of financialization of entity enterprises on technological innovation capabilities,and then takes the annual financial data of China’s A-share listed entity enterprises from 2012 to 2020 as a sample,constructs an empirical model for empirical analysis,and further examines the different levels of financing constraints and different property rights.In order to make the research conclusions more reliable,the impact of the financialization of entity enterprises on their technological innovation capabilities is tested from the perspectives of variable substitution and endogenous analysis,and finally the mediation effect of the financialization of entity enterprises on technological innovation ability is empirically analyzed.The study found that:(1)The financialization of entity enterprises has a negative effect on the ability of technological innovation.(2)Regardless of the degree of external financing constraints faced by entity enterprises,the financialization of entity enterprises will still have a negative effect on their technological innovation capabilities.The higher the degree of external financing constraints faced by entity enterprises,that is,the more difficult it is for entity enterprises to obtain external capital support,the less conducive it is to the improvement of their technological innovation ability.(3)Compared with state-owned enterprises,the negative effect of the financialization of entity enterprises on the technological innovation ability of non-state-owned enterprises is small.From the results of the lag of the first period of analysis,it can be seen that the negative effect of the financialization of entity enterprises on the technological innovation ability of state-owned enterprises has decreased with the extension of time,while the negative effect of financialization of entity enterprises on the technological innovation ability of non-state-owned enterprises has increased with the extension of time.(4)In the analysis of the mediation effect of the financialization of real enterprises on the ability of technological innovation,the capital accumulation effect and the motivation exclusion effect are manifested as the masking effect,and the resource crowding effect is manifested as the significant intermediary effect.The financialization of entity enterprises can produce a capital accumulation effect to a certain extent,and can also enhance the operating performance of enterprises in the short term,but the positive effect of capital accumulation effect and the improvement of operating performance is far from offsetting the squeezing effect of entity enterprises on technological innovation investment resources due to holding financial assets,so from the result point of view,China’s entity enterprises do not carry out financial investment to increase liquidity reserves,but more like a speculative demand.The research in this paper helps to explain the motivation and impact of the financialization of entity enterprises,and provides important practical significance for alleviating the problem of "derealization to virtuality" of China’s entity enterprises from the perspective of both the government and enterprises.