Research On The Influence Of Financialization On Enterprise Innovation

The report of the 20 th National Congress of the Communist Party of China pointed out that we must adhere to the concept of innovation as the primary driving force.Since China’s economy entered the New normal,although the level of innovation has been gradually improving,it has not yet reached the level of developed countries.Many key core technologies are still under the control of others,and continued improvement of innovation capability is still the top priority of economic development.In the process of economic development in our country,physical enterprises are facing problems such as weakened market demand and rising production costs.Overall profitability has deteriorated,and enterprise development has encountered difficulties.In contrast,the profits of the financial industry have been consistently high.Driven by the pursuit of profit through capital,physical enterprises have continuously increased their investment in financial assets,even deviating from their main business,leading to a phenomenon of "shifting from real to virtual" in China’s economy.Against the backdrop of the overall economic downturn,it is worth studying the impact of financialization on corporate innovation and how it can enable enterprises to achieve long-term value growth.This thesis uses sample data from non-financial listed companies in A-share market from2012 to 2021 to study the impact of financialization on corporate innovation,as well as the moderating effect of market competition and equity incentives on the relationship between the two.The research approach of this thesis is as follows: firstly,by analyzing the background and current situation,raise questions,sort out domestic and foreign literature,and propose the research content of this thesis;Secondly,define the concepts of financialization,enterprise innovation,market competition,and equity incentives,and propose the research hypotheses of this thesis;Introduce again the data selection and research model methods of this thesis,and use empirical methods for analysis;Finally,based on the results of empirical analysis,the conclusion of this thesis is drawn and corresponding policy recommendations are proposed.The basic conclusion of this thesis is that financialization significantly suppresses the investment and output of enterprise innovation;Relaxed market competition can alleviate the inhibitory effect of financialization on enterprise innovation;Equity incentives can alleviate the inhibitory effect of financialization on enterprise innovation;Compared to low growth enterprises,the inhibitory effect of financial melting on innovation input and output in high growth enterprises is weaker;Compared to non-high-tech enterprises,financialization has a weaker inhibitory effect on the innovation input and output of high-tech enterprises.Based on the above research,this thesis proposes the following suggestions: at the government level,it is necessary to standardize the development of financial markets and enhance the level of financial services;Guide the transformation and upgrading of physical enterprises to improve profitability;Improve the supervision and management system,and strengthen the protection of innovative achievements.At the enterprise level,it is necessary to fully leverage the functions of corporate governance and avoid inappropriate decision-making;Enhance one’s own innovation awareness and attach importance to industrial development.