Financialization Of Entity Enterprises And Technological Innovation

At present,a new round of technological revolution and industrial transformation is booming,and technological innovation has become a key variable.The trend of the financialization of real enterprises has triggered scholars’ research on its influencing factors and economic consequences,and is also worthy of the attention of enterprise and the government.The relationship between financialization and technological innovation is essentially a behavior of resource allocation.It is an investment decision made by an enterprise in its internal and external environment after comprehensively considering the risks and returns of investment.This paper selects manufacturing enterprises listed in A-share market from 2011 to2021 as samples.The empirical results show that the impact of financial entity on technological innovation is mainly negative substitution effect.The higher the degree of enterprise financialization will hinder the development of enterprise innovation.This conclusion is still valid after passing the endogenous test of tool variables,variable substitution and the robustness test of lagging items.The further regulatory effect test found that monetary compensation incentives for senior executives and local financial supervision can weaken the crowding-out effect of financial entity on innovation investment.Compared with short-term financial assets,non-liquidity financial investment has a greater substitution effect on innovation investment.Monetary compensation incentives and financial supervision also play a regulatory role between long-term financialization and technological innovation.In addition,among state-owned enterprises,enterprises with large assets and high institutional shareholding ratio,financialization has a stronger inhibitory effect on innovation.The financialization of real enterprises is a continuous trend.It is important for enterprises to respond correctly and the government to actively guide them.This paper suggests that we should improve the internal incentive system,and incorporate long-term innovation performance into performance evaluation indicators;Maintain a reasonable scale of financial assets,optimize the liquidity structure of financial assets,and increase the proportion of various short-term financial products;Promote the reform of the financial system,apply digital technology to financial supervision,and effectively support the innovation and transformation of the real economy.