Research On The Impact Of Entity Enterprise Financialization On Enterprise Innovation From The Perspective Of Digital Finance

"Moving away from reality to emptiness" in the economy is one of the practical issues that need to be taken seriously in the process of economic development in China.At the micro level,the phenomenon of financialization of physical enterprises is prominent,manifested by the continuous entry of many physical enterprises into the field of financial investment.In recent years,China has continuously promoted the development of financial innovation and the transformation of financial digitization,but it is also emphasized that,regardless of the form of financial innovation,the government is emphasizing the importance of serving the development of the real economy and using finance to solve corporate financing problems.However,the relationship between the development of digital finance and the financialization of physical enterprises and enterprise innovation is still unclear,and may have different effects due to different motivations for enterprises to allocate financial assets.Therefore,the role of digital finance development in the impact of the financialization of physical enterprises on innovation remains to be tested.In order to explore the relationship between the three,first of all,this article combs the development of entity enterprise financialization,the factors affecting enterprise innovation,and the consequences of digital finance.It analyzes the mechanism of entity enterprise financialization on enterprise innovation from two aspects: the "speculative arbitrage" motivation and the "reservoir" motivation of entity enterprise allocation of financial assets.Based on the relevant data of all manufacturing companies listed in China’s A-share market from 2011 to 2020,with enterprise innovation as the research object,this paper uses empirical analysis models to explore the impact of entity enterprise financialization on enterprise innovation,explore the regulatory role of digital finance development,and conduct a series of stability tests.Finally,this article also analyzes the heterogeneous factors that affect enterprise innovation from the perspective of the region,nature,and scale of the enterprise.The results show that:(1)Enterprise financialization inhibits innovation,and entrepreneurs’ motivation for allocating financial assets stems from "speculative arbitrage" rather than "reservoir effect";(2)Digital finance can alleviate the negative impact of the financialization of physical enterprises on innovation;(3)The inhibitory effect of the financialization of physical enterprises on enterprise innovation is more evident in large-scale,state-owned,and Midwest enterprises,while the regulatory effect of digital finance is more significant in small-scale,non-state owned,and Midwest enterprises.The research in this article not only clarifies the relationship between the development of digital finance in the financialization of physical enterprises and enterprise innovation,but also further complements the research on the impact of the allocation of financial assets by physical enterprises on enterprise innovation.And put forward reasonable suggestions on how to invest in physical enterprises and how to grasp digital finance,with a view to providing policy suggestions and experience references on how to respond to the "shift from virtual to real" and how to guide the innovation of physical enterprises in digital financial services.