The Impact Of Enterprise Financialization On R&D Investment

At present,China’s economy has entered the stage of high-quality development.Enterprise R&D and innovation activities are actually the foundation and engine of high-quality economic development,and their importance is increasingly prominent.The R&D activities of enterprises can not only help them to build their own market competitiveness,but also improve the overall level of scientific and technological innovation of China,thus helping China to become a world leader in science and technology.Therefore,the report of the 20 th National Congress of the Communist Party of China once again emphasizes the need to deeply implement the innovation driven development strategy and adhere to the core position of innovation in China’s modernization drive.However,in recent years,attracted by the high returns in the financial market,many enterprises have chosen to invest more and more funds in the financial market,showing a tendency of "financialization".On the one hand,enterprises’ investment in financial assets will increase their income and bring additional funds for their R&D activities,but on the other hand,there is also the possibility of crowding out enterprises’ R&D investment.In various industries,manufacturing is the lifeblood of China’s economy.However,the technological innovation capabilities of Chinese manufacturing enterprises still need to be improved,so carrying out R&D activities is particularly important for Chinese manufacturing enterprises."Made in China 2025" sets the strategic goal to make China strong in manufacturing,and emphasizes the need to improve the innovation capabilities of Chinese manufacturing enterprises.This paper takes the Ashare manufacturing enterprises in 2016-2021 as a sample to study the impact of enterprise financialization on R&D investment,and analyzes the heterogeneity from the perspective of ownership nature,enterprise size,location,industry nature and so on.In addition,it further explores whether financing constraints and government subsidies play a regulatory role between enterprise financialization and R&D investment.The main conclusions of this paper are as follows: 1.The financialization of manufacturing enterprises has a significant inhibitory effect on R&D investment.2.Through heterogeneity analysis,it is found that the financialization of non-state owned enterprises,large-scale enterprises,enterprises in the central and western regions,and non high-tech enterprises has a more significant inhibitory effect on R&D investment.3.Financing constraints and government subsidies play a regulatory role between corporate financialization and R&D investment.Specifically,the relaxation of financing constraints and the increase of government subsidies can weaken the inhibitory effect of corporate financialization on R&D investment.Based on the above conclusions,this paper puts forward relevant suggestions from the perspectives of the government and enterprises respectively.From the perspective of the government: strengthen the supervision of corporate financialization and guide them to return to their main business;actively guide the financial market to better serve the real economy and alleviate corporate financing constraints;continue to provide R&D subsidies,improve the subsidy system,and guide enterprises to actively carry out R&D activities.From the perspective of enterprises: formulate reasonable business strategies and establish correct business concepts;reasonably allocate financial assets and attach importance to risk assessment and control;improve R&D mechanisms to enhance innovation capabilities.