| Innovation drives development,and whoever masters the key element of innovation in today’s era will be able to gain a foothold or even lead in the new round of revolution.Enterprises are one of the pillars of innovation and an important part of innovation in society as a whole.However,one of the prerequisites for corporate innovation is adequate financial support,and if internal funds are not sufficient to meet innovation needs,external financial support is required.Bank loans play a key role in this process,and bank loan support has become an important factor affecting corporate innovation.With the continuous promotion of China’s banking industry reform,a more orderly competition ecology has been formed,which has effectively alleviated the financing constraints of enterprises.However,as the gap between the profitability of the financial sector and that of the real sector has widened significantly in recent years,most enterprises have invested their capital in the financial sector,crowding out resources for corporate innovation and development.So,does the increased competition in the banking sector affect corporate innovation by affecting the financialization of firms? If there is an impact then what about this mechanism?Are there differences in the heterogeneity of firms? Addressing these questions has good implications for promoting market-oriented reforms in China’s banking sector and reducing firms’ tendency to financialize.To this end,this paper attempts to provide theoretical and empirical support for corporate technological innovation by examining these questions.This paper takes 23105 data from 3422 enterprises in my country’s 2010-2020 Sh anghai and Shenzhen stock markets as the research sample,takes the Herfindahl index HHI as the core explanatory variable,the enterprise R & D investment as the explain ed variable,and the enterprise financialization as the intermediary variable.By establi shing a suitable econometric model,the empirical analysis of the impact of banking c ompetition on enterprise innovation.The study shows that banking competition can promote corporate innovation,and the results remain robust after replacing the indicators of banking competition and corporate innovation,while the results remain robust when considering the sample selection problem and replacing the sample.The mechanism test shows that corporate financialization plays a partial mediating effect in this process,which implies that banking competition plays a partial transmission role in promoting corporate innovation and inhibiting corporate financialization.When we compare the heterogeneity among firms,we find that increased banking competition has a significantly larger impact on innovation inputs of non-state and small firms than of state and large firms.Based on the empirical results,this paper proposes the following countermeasures at the government,bank and enterprise levels: the government should further regulate the investment of institutional investors in the financial sector and regulate the profitability of the financial sector;it should continue to introduce policies to promote the diversification of the financial market to redirect capital to the real economy and avoid enterprises from shifting excessively from the real economy to the virtual economy.On the banking side,it is necessary to further strengthen the level of market competition in the banking sector,especially in the central and western regions where the degree of monopoly in the banking sector is still high;strengthen the supervision of financial institutions to ensure the provision of better quality financial services for enterprises.On the enterprise side,on the one hand,we need to fully mobilize enterprise resources,allocate financial assets according to needs and business conditions,and avoid excessive financialization;on the other hand,we need to focus on the long term,pay attention to innovation and development,and increase investment in technological innovation and R&D. |
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