Research On Institutional Investor Shareholding And Firm Innovation

Innovation is the primary driving force for development.In recent years,China has made great achievements in innovation investment and innovation performance.Continuous innovation constantly improves the competitiveness of Chinese enterprises,and also reflects China’s comprehensive national strength.At the same time,the Chinese government encourages institutional investors to participate in corporate governance and contribute to the orderly and healthy development of the capital market.This paper focuses on the influence of institutional investors’ shareholding on enterprise innovation,which provides a reference for how to develop institutional investors to improve corporate governance.This paper selects the data of Chinese A-share manufacturing enterprises from2007 to 2020 as the research sample,and systematically analyzes the influence of heterogeneous institutional investors shareholding on enterprise innovation.By adding the intermediary factor of corporate financialization,we can further explore the path for institutional investors to influence corporate innovation.The results of the empirical analysis and robustness test are as follows: First,Institutional investors can exert shareholder activism and significantly promote R&D investment.However,the regression coefficient is small and the significance level is not high,so the influence is limited.Second,due to the different situations of heterogeneous institutional investors,they have different degrees of closeness with the business of enterprises,and their influence on R&D investment is different.The independent institutional investor shareholding has a significant positive correlation with R&D investment,while the non-independent institutional investor shareholding is negatively related to R&D investment,but it is not significant.Third,the impact of corporate financialization.Both the overall institutional investor and the heterogeneous institutional investor shareholding will promote the financialization of enterprises.In the influence of overall institutional investor shareholding and the independent institutional investor shareholding on R&D investment,and corporate financialization plays a masking effect.The non-independent institutional investor shareholding has no significant impact on R&D investment,and it is difficult for corporate financialization to play an intermediary effect.Fourth,the impact of the nature of equity.In state-owned manufacturing enterprises,the independent institutional investor shareholding will promote R&D investment,and corporate financialization plays a masking effect.The non-independent institutional investor shareholding will inhibit R&D investment,and corporate financialization plays a partial intermediary effect.However,in non-stateowned manufacturing enterprises,institutional investor shareholding have no significant impact on R&D investment.Based on the above research results,this paper gives the following suggestions: First,further leverage the advantages of institutional investors to provide high-quality resources for enterprises.Second,further develop institutional investors and increase the proportion of independent institutional investors.Third,further focus on the phenomenon of financialization of manufacturing enterprises,strengthen the government’s supervision of the degree of financial level of entities.Fourth,Further play the role of independent institutional investors in promoting the R&D investment of state-owned manufacturing enterprises,and increase the government’s innovation support for non-state-owned manufacturing enterprises.