Institutional Investors,financing Constraints And Corporate Innovation

The report of the 20 th National Congress of the Communist Party of China pointed out that innovation is the primary driving force for development,implement the innovation-driven development strategy,put innovation in the advantageous position of development,optimize the allocation of resources related to innovation,and build an efficient national innovation system.The uncertainty of today’s world development has intensified,and only by strengthening innovation can China transform to high-quality development and enable China to gain advantages in fierce international competition.As the main body of social innovation,enterprises can not only enable enterprises to gain a dominant position in the market,occupy market share and earn more profits,but also help the transformation and upgrading of China’s industrial structure and enhance China’s international competitiveness.The scale of China’s capital market continues to expand in the process of rapid economic development in China,and more and more enterprises obtain financing through the capital market and solve the capital problems encountered in the development of enterprises through listing.As important participants in the capital market,institutional investors have played an important role in improving corporate governance and promoting corporate innovation.Based on the actual development of China’s economy,combined with the relevant research of previous scholars and the relevant theories of corporate governance,the relationship between institutional investors,financing constraints and enterprise innovation is proposed.The empirical data of listed companies in China were selected and empirically tested by constructing an intermediary effect model,and the explanatory variables were the R&D investment intensity of enterprises,the explanatory variables were the shareholding ratio of institutional investors,and the SA index was selected as the measurement index of financing constraints,and the three were included in a unified research framework to explore the relationship between institutional investors and enterprise innovation investment and analyze whether the impact occurred through the path of financing constraints.It also discusses the classification of institutional investors and enterprises,so that the research content is richer and more realistic.Based on the research and analysis of this paper,the following conclusions are drawn: first,institutional investor shareholding has a positive correlation with the innovation investment intensity of enterprises,and institutional investor shareholding can promote the increase of enterprise innovation investment by alleviating the financing constraints faced by enterprises;Second,different types of institutional investor shareholding have different impacts on enterprise innovation,and relatively independent institutional investor shareholding can significantly promote the increase of enterprise innovation,while institutional investor shareholding with close ties to enterprises will significantly inhibit enterprise innovation.Third,the mediating effect of financing constraints only plays a role in state-owned enterprises;Fourth,institutional investor shareholding can significantly promote the increase of innovation of manufacturing enterprises,although it can also promote the increase of innovation of non-manufacturing enterprises,but the effect is not significant.Based on the research conclusions,several suggestions are put forward: first,enterprises should continuously improve the governance system and pay attention to the important role of innovation in enterprise development;Second,we should more actively guide the development of institutional investors and strengthen investor education protection;Third,improve the market system and legal construction,and create a fair and orderly market atmosphere.