Research On The Impact Of Entity Enterprise Financialization On Enterprise Innovation

The report of the 20 th National Congress of the Communist Party of China emphasizes that we should thoroughly implement the innovation-driven development strategy and lead the transformation and upgrading of the real economy with innovation.However,in the context of the " new normal " of the economy,some real enterprises have turned their attention to the financial sector with strong development momentum in order to get rid of the pain of economic transformation.The financial investment behavior with high income and strong flexibility has brought high returns to enterprises,but it has gradually caused the phenomenon of " breaking away from reality to virtual " of the economy,which is microscopically called the trend of enterprise financialization.This trend has increased risks and uncertainties for the development of real enterprises.Therefore,it is of great theoretical and practical significance to explore the relationship between the financialization of real enterprises and enterprise innovation,and to sort out the motivation of enterprise investment behavior,so as to promote government policy guidance,enterprise application practice and market diversified development.Based on the above research background,this paper takes China ’s A-share listed non-financial enterprises from 2009 to 2020 as a sample,and on the basis of relevant theories,uses multiple linear regression model to study the impact of the financialization of real enterprises on the innovation input and innovation output of enterprises and the lag and sustainability of the impact.Secondly,under the influence of preventive motivation and speculative profit-seeking motivation,the moderating effect of internal financial flexibility and external financing constraints is expanded.Finally,from the perspective of enterprise investment motivation,this paper analyzes the differences in the relationship between the two under different property rights,life cycle and technology dependence.The final study found that the financialization behavior of real enterprises has a ’crowding out effect ’ on both innovation input and innovation output,and the impact is lagging and persistent.This shows that enterprises allocate financial assets mainly for speculative profit-seeking motives,and the continuous penetration of limited funds into the financial market has squeezed the innovation resources of enterprises,thus negatively affecting them.In addition,financial flexible enterprises mainly make financial investment based on preventive motivation,which can effectively alleviate the negative effect of financialization of real enterprises on enterprise innovation.Enterprises with strong financing constraints mainly make financial investment based on speculative profit-seeking motivation,which aggravates the negative effect of financialization of real enterprises on enterprise innovation.Due to the differences in corporate investment motives,the impact of financialization of real enterprises on corporate innovation is heterogeneous in terms of the nature of corporate property rights,life cycle,and technology dependence.Among them,state-owned enterprises,growth and maturity enterprises,and enterprises with low technology dependence have a stronger negative impact.Finally,this paper puts forward relevant policy recommendations from the government,enterprises and capital market levels based on the actual development of real enterprises.