Research On The Impact Of Non-Financial Enterprises’s Shadow Banking Business On Innovation Investment

Innovation promotes the continuous development and progress of human society.As an important economic activity subject,enterprises are the most active innovation factors.The innovation input of enterprises determines the quality of output,which further affects the long-term survival and development of enterprises.However,the capital demand for innovation investment is large,the cycle is long,the adjustment cost is high,and technology spillover may occur.Therefore,the innovation activities of enterprises have high risks.At the same time,the imperfection of the financial system caused the mismatch between the enterprise’s capital demand and the financing scale,as well as the continuous expansion of the financial and entity sector’s profitability caused by financial innovation and financial regulatory loopholes,which induced many non-financial enterprises to act as credit intermediaries and engage in high-risk shadow banking business through entrusted loans,entrusted financing,private loans and other ways,and the shadow banking degree of non-financial enterprises has been deepening.In recent years,the phenomenon of insufficient investment in real production activities is obvious,the real economy is sluggish,a large number of capital is separated from the real economy and "idle" at a high speed,the function of financial services to the real economy is weakened,the effect of a series of stimulus measures is not significant,and the economy shows a clear trend of "disenchantment" and "hollowing out".Based on this,this paper attempts to analyze how the shadow banking of non-financial enterprises will affect innovation investment,which path will the impact be transmitted through,and whether there will be some differences due to different characteristics of enterprises.Firstly,this paper analyzes the relevant literature from two aspects: the shadow banking business of non-financial enterprises,innovation activities,and the impact of shadow banking business of non-financial enterprises on innovation investment,summarizes previous research results,and finds out what can be used for reference and further research space.Secondly,by analyzing the motivations for non-financial enterprises to participate in shadow banking business and the characteristics of enterprise innovation activities,and based on resource scarcity theory,financing constraint theory,and principal-agent theory,it is proposed that non-financial enterprises’ participation in shadow banking business may have a crowding out effect on innovation investment,and an econometric model is constructed.On this basis,select the data of non-financial enterprises listed on A-shares in China from 2012 to2021,use the fixed effect model to analyze the impact of non-financial enterprises’ shadow banking activities on innovation investment,and use the replacement of key variable,instrumental variables,propensity score matching to test the robustness.In addition,this paper uses the intermediary effect model to analyze whether the shadow banking activities of non-financial enterprises will affect the innovation input of enterprises by expanding the instability of enterprise cash flow and the difference between financial and entity returns.In order to further test the impact of shadow banking activities on innovation investment in non-financial enterprises with different ownership,the same chairman and general manager and different equity concentration,this paper conducts group regression on sample enterprises.The research finds that the shadow banking activities of non-financial enterprises will significantly inhibit innovation investment,and the conclusion is robust.Through the mechanism test of the intermediary effect model,it is found that the shadow banking of non-financial enterprises will aggravate the instability of enterprise cash flow,which will have a negative impact on enterprise innovation investment;In addition,the growth of non-financial enterprises’ shadow banking business scale will expand the difference between financial and entity returns,thereby inhibiting the innovation investment of enterprises.Further grouping regression of sample enterprises according to the nature of enterprises,whether the chairman and general manager positions are held by the same person,and the concentration of equity.It is found that the crowding out effect of non-financial enterprises’ participation in shadow banking on innovation investment is more obvious in non-state-owned enterprises,enterprises which the chairman and general manager positions are held by two persons,but there is no significant difference among enterprises with different equity concentration ratio.Finally,according to the research conclusion,this paper puts forward suggestions on improving the financial system,improving the business environment,strengthening internal incentive measures,and improving external regulatory mechanisms to reasonably constrain the shadow banking of non-financial enterprises and promote enterprise innovation investment.