The Impact Of Corporate Financialization On Corporate Innovation

Clarifying the relationship between corporate financial investment and technological innovation is intended to explore the balance and coordination of financial and economic development.This paper takes China’s manufacturing listed companies from 2006 to 2019 as a sample to empirically test the effect and mechanism of corporate financialization on innovation activities.The results show that the degree of corporate financialization has an inverted U-shaped relationship with innovation input and innovation output,that is,corporate participation in financial activities has a two-sided impact on real companies: moderate financialization is conducive to corporate innovation,but this positive effect is in high-quality innovation.Excessive financialization hinders enterprise innovation,and this negative effect affects about 33.1% of enterprises.In terms of the impact mechanism,this paper confirms the support effect brought by moderate financialization,and the "substitution" and "crowding out" effects caused by excessive financialization.The unique instrumental variables and propensity matching score method and a series of robustness tests reaffirm this conclusion.Further research shows that a reasonable level of financialization has a greater impact on non-state-owned enterprises,companies in industries with high levels of competition,and non-high-tech industries.had a certain impact.The above findings provide some important references for macro decision-making,corporate financial investment and innovation decision-making.