Moderation Of Enterprise Financialization,Macroeconomic Policy And Innovation

Innovation constitutes an important engine powering the stability of society and rapidity of economy growth for a nation.Innovation of enterprises in China has driven in a smooth development way in recent years,and the number of patents increases exponentially,which however is of insufficient motivation and low level compared with developed countries such as Europe and USA.The weakening real economy and saturating market demands and the blossoming financial market and fast financial products upgrade,together with inter-industry development imbalance all lead to a profitability disparity between industry and finance,which make enterprises tend to pursue excess profit and over-develop financialization and causing deviation from core business and marginalization of innovation,so-called “Departing from Reality for Virtuality”.Chinese government,worried about such trend,has introduced a series of policies guiding real industry enterprises in financializing and participating in finance marketplace.General Secretary Xi Jinping also frequently emphasized that focusing on core operations and improving self-innovation abilities in entity enterprises are important for the healthy competition among enterprises,and healthy sustainable development of national economy.In both macro and micro perspectives,enterprise financialization is something inevitable and should not be avoided,however what need be discussed is the moderation of it.In macroeconomic perspective,the rapid growth of national economy is bound to be accompanied by the vigorous development of financial industry.For developing in high-speed and high-quality,the real economy should use financial market appropriately.In micro-enterprise perspective,increasing financial assets holdings,one of the most important types of assets in enterprises,is the most direct way and direct manifestation of financialization.Enterprises cannot hold zero financial assets or hold too much.Then,how would enterprises judge and control the appropriateness of financialization? And considering moderation of financialization,how will the relationship change between enterprise financialization and innovation? Encountering the global macroeconomic fluctuation,pursuing the upgrading of industrial structure and the economy transformation from high-speed growth to high-quality development,Chinese government adjusts fiscal and monetary policies frequently in order to promote the sustained and healthy development of national economy.Will fiscal policy and monetary policy play roles in the relationship between corporate financialization and innovation? Will macroeconomic policies and micro-enterprise behavior interact to achieve long-term sustainable development of enterprises?From the perspective of sustainable financial development,this dissertation defines the moderation of financialization as coordination of current and future realization of shareholder value and enterprise financialization.Sampling Chinese Shanghai and Shenzhen A-shares non-finance listed companies from 2007 to 2017,the relationship between enterprise moderation of financialization and innovation is studied in the following aspects:(1)Based on shareholder value theory,analyzing the theoretical basis of the screening model for moderation of enterprise financialization,and constructed a model of screening the moderation of financialization in sample enterprises,and have the results analyzed and tested.(2)Based on the screening results of moderation,conducts theoretical analysis and empirical test on the dynamic changes and transmission paths of the relationship between enterprise financialization and innovation under different moderation level,and further studies on the moderating effect of initiative of financialization.(3)Based on the analysis and verification of the dynamic relationship,analyses and empirically tests the moderating effect of macroeconomic policies,as well as the interactive moderating effect of macroeconomic policies and initiative of financialization.The findings are as follows:(1)There is a tendency of over-financialization in Chinese enterprises,which is becoming increasingly prominent and need to be regulated.The financial crisis in 2008 also has a certain impact on the appropriate distribution of enterprise financialization.Besides,over-financialization inhibits the investment in fixed assets and intangible assets,damages core performance and improves financial performance;while under-financialization promotes the investment in fixed assets and have no negative effect on revenue.(2)Over-financialization inhibits innovation,under-financialization promote innovation,so that the relationship adjusts dynamically according to moderation;the inhibiting effect of over-financialization on innovation is mainly transmitted through financing constraints,financial performance and free cash flow,while the promoting effect of under-financialization on innovation is mainly transmitted through free cash flow.In addition,compared with the active-financialized enterprises,the innovation in passive-financialized enterprises is more sensitive to the moderation of financialization.(3)Government subsidies alleviate the inhibiting effect of over-financialization,while loose monetary policy intensifies the inhibiting effect.Furthermore,initiative of financialization has an interactive moderating effect with government subsidies or monetary policy.The conclusions of this dissertation have the following theoretical contributions and innovations:(1)In order to find the moderation of financialization,a model is constructed to screen the moderation of enterprise financialization,which is different from the existing research literature which directly characterizes enterprise financialization as excessive,thus providing a new measurement method for the relevant research of financialization.(2)In the meantime,the dynamic changes of the relationship between enterprise financialization and innovation under different moderation level are analyzed and deduced,which tend to resolve the academic disputes that the relationship between financialization and innovation is either inhibition or promotion.(3)Also have the transmission path of the relationship between the moderation of enterprise financialization and innovation studied,and explore the influencing factors of the relationship on the perspective of the initiative financialization,reveal the transmission and interaction mechanism of the relationship from the micro level,thus improving the internal logic system of enterprise financialization and innovation.(4)Deeply explore the moderating effect of government subsidies and monetary policy and the interactive moderating effect between policy effect and initiative of financialization,explore the influencing factors of the relationship from the macro level,thus expanding the scope of the interaction between macro-economic policies and micro-enterprise behavior.According to the research results in this dissertation relative suggestions on government policies are raised,which would significant in the following ways:(1)It is beneficial for enterprises to allocate financial assets appropriately according to specific circumstances,and adjust investment behavior according to macroeconomic policies and improve innovation.(2)It is helpful for investors to forecast the development prospects of enterprises and make rational investment decisions through the indication information content of financialization moderation.(3)It is conducive for the government to guide finance to serve enterprises and promote sustained healthy economic development by optimizing macroeconomic policies.