Research On The Impact Of Bank Reform On Enterprise Innovation

Finance is very important to real economic growth.In the supply-side structural reform of China's transitional economy,China's banking industry is also shifting the focus of banking serving to the real economy.The study of finance and the real economy has been given new content in the new era.This paper effectively combines two major economic research fields,one is commercial bank research in financial economic research,the other is technology innovation and R&D management research in economic development research.It systematically combs the impact of bank reform on enterprise innovation by using theoretical models and micro-data.While enriching economic theory,it tries to understand the impact of commercial banking access opening on the real economy.At the same time,it provides targeted policy recommendations for China's ongoing banking reform and economic restructuring.The paper is divided into 8 chapters.The contents of each chapter are arranged as follows: Chapter 1 introduces the research background of the article;analyses the research significance of the article;combs the research ideas and framework of the article;and puts forward the research innovation points of the article.Chapter 2 systematically combs the relevant literature at home and abroad.Chapter 3 starts with the theoretical model and studies the impact of banking access opening on enterprise technological innovation.Chapter 4,based on the micro-data of China's banking industry,uses the dynamic panel system GMM model to empirically study the impact and mechanism of banking access opening on bank's own risk from the balance sheet and off-balance sheet mechanisms.Chapter 5 explores the impact of banking access opening on enterprise innovation by combining micro-data of banking branches in prefecture-level cities and data of industrial enterprises in China,using industry financing dependence to reduce endogeneity.Chapter 6,based on the panel data of prefecture-level cities in China,uses static panel model and difference-in-difference model to study the impact of banking access opening on the structural reform of industrial supply side and its impact path.Chapter 7,based on the data of prefecturelevel cities in China,uses fixed-effect model and difference-in-difference model to explore the path of banking access opening to promote the development of real economy.Chapter 8 makes a comprehensive summary and analysis of the research content and theme,discusses the innovation and practical significance of the article,and further highlights the future research direction and focus.The main conclusions of this paper are as follows: the deregulation reform of banking access opening reduces financing costs and bank risks,increases the supply of bank credit to a certain extent and eases the financing constraints of enterprises;Under the condition that the financing constraints of enterprises are eased,banking access opening improves the level of technological innovation of enterprises at the horizontal effect.At the structural effect,it promotes the transformation and upgrading of industrial structure.Therefore,banking access opening promotes regional economic growth through the increase of credit supply.Specifically,there are four conclusions.Firstly,banking access opening reduces bank risk through off-balance-sheet mechanisms.The opening of banking access can effectively increase non-interest income;the increase of non-interest income reduces bank risk;at the same time,noninterest income reduces the positive impact of banking access opening on bank risk.This effect even reverses the traditional "competition-fragility" relationship,making the banking access opening and bank risk mainly negative relationship,following the traditional "competition-stability" theory.Therefore,the paper considers that the increase of off-balance-sheet non-interest income is the main mechanism to reduce bank risk,and the opening of banking access mainly reduces bank risk through noninterest income.Secondly,banking access opening promotes enterprise innovation;the financial structure reduces the role of banking access opening in promoting enterprise innovation;furthermore,the financial structure significantly reduces the role of bank access liberalization in promoting technological innovation of private-owned enterprises,while the financial structure has no significant effect on the impact of bank access liberalization on innovation of state-owned enterprises.Thirdly,banking access opening promotes the upgrading of industrial structure through technological innovation.Specifically,banking access opening has two effects: horizontal effect and structural effect,horizontal effect will drive the increase of enterprise innovation,while structural effect will promote the transformation and upgrading of industrial structure;the link between horizontal effect and structural effect is enterprise technological innovation.Enterprise technological innovation is the source of industrial supply-side structural reform.Fourthly,banking access opening reduces the concentration of banking industry,promotes bank competition,improves the availability of credit for enterprises in the region,reduces the interest rate of loans,improves the supply of credit in equilibrium,alleviates the financing constraints of enterprises to a certain extent,and thus promotes economic growth.Banking access liberalization improves regional economic growth by promoting credit supply.The innovation of the paper is mainly embodied in the following four points.(1)New perspective.On the one hand,this paper is the first document to study the causality between banking access opening and bank risk from both inside and outside the balance sheet based on the data of banks of China.The existing literature on bank risk is mostly based on the balance sheet,lacking of research on banking access opening and risk from both internal and external perspectives.This paper theoretically expands the research on banking access opening and bank risk.On the other hand,in the empirical study on enterprise innovation,the paper studies the impact of bank financing and financial market on enterprise innovation from the perspective of whether they can serve the real economy together.Most of the previous research literature on enterprise innovation or economic growth from the perspective of finance will compare bank financing with financial market financing and observe their impact on enterprises.What is the role of industrial innovation or economic growth? however,the real economy is always a mixture of the two,in different economic systems,the main financing methods depend on are different,so the previous literature seldom combines the two to study economic growth or enterprise innovation.The article focuses on whether bank financing and financial market can serve the development of real economy and promote enterprise innovation together.These are the two new perspectives proposed in this paper.(2)New viewpoints.On the one hand,the impact of banking access opening includes "horizontal effect" and "structural effect" : "horizontal effect" means that banking access opening reduces financing costs and bank risks,thus promoting technological innovation of enterprises;and "structural effect" means that bank access liberalization promotes the transformation and upgrading of industrial structure through technological innovation of enterprises.On the other hand,the high proportion of credit in financial structure will reduce the role of bank access liberalization in promoting technological innovation of private enterprises,while the financial structure will not affect the role of bank access liberalization in promoting technological innovation of state-owned enterprises.(3)New method.Three methods are used to reduce the endogeneity of research variables.Firstly,in static panel model,multi-level fixed effect is used to reduce the endogeneity caused by missing variables.At the same time,by introducing the index of industry external financing dependency,we can identify the causality of the impact of banking access opening on enterprise innovation by using the industry external financing dependency degree endowed by production technology of different industries,so as to reduce the endogeneity of the two-way causality.Secondly,in the dynamic panel model,lag terms of endogenous variables are used as instrumental variables,and the generalized moment estimation of dynamic panel system is used to reduce endogeneity.Thirdly,in the quasi-natural experimental,by using differencein-difference model,policy shocks are used to identify the causal relationship between banking access opening and enterprise innovation,so as to reduce endogeneity.(4)New data.Breaking through the characteristics of data limitation in China's banking industry research,while constructing the index of bank access liberalization,we extract the number of branches of each bank in each prefecture-level city every year according to the data of "financial license",and then describe the situation of bank access liberalization in more micro-level County-level cities in detail,thus making the empirical conclusion.The results are more robust.