The Impact Of Loan Interest Rate Changes On Enterprise Innovation: Empirical Evidence Of China's Large And Medium-sized Industrial Enterprises

The research on how to improve the national economy has always been the focus of research both at home and abroad.With the "13th Five-Year National Science and technology innovation plan" proposed to improve the technology and financial integration mechanism,increase financial support for enterprise innovation activities.Guiding the establishment of innovative financial markets has become a new focus of attention.The deregulation of interest rate(especially the interest rate marketization)can promote the efficiency of financial market allocation.In particular,the loan interest rate as the price of funds,its change will affect the cost of capital use.This will significantly affect the credit structure of the bank and the efficiency of the use of enterprise funds,and play an important role in the innovation investment and innovation activities of enterprises.Under the influence of inflation and interest rate control,the actual loan interest rate of Chinese commercial banks from 1985 to 1996 was negative,with an average annual rate of only-1.68%.The cost of capital has been depressed,and financial repression has been serious.Since the interest rate market reform started in 1997,the actual lending rate is too low to be improved.From 1997 to 2003 and from 2004 to2015,the annual interest rates of 6.27% and 3.05% were maintained.An important goal of market-oriented interest rate reform is to play a regulatory role of interest rates in the allocation of resources.Then,how does the upward impact of real lending rates affect corporate innovation?Based on the adjustment of interest rate fluctuation since the interest rate liberalization reform,this paper makes a theoretical analysis on the logic mechanism of the loan interest rate affecting the enterprise innovation.Using provincial panel data from 1997 to 2015 Chinese of large and medium-sized industrial enterprises,lending rates,lending rates affect enterprise innovation,enterprise innovation and enterprise heterogeneity effect and influence of enterprise innovation loan rate the nonlinear relationship between the empirical research.The following conclusions are obtained:First,the improvement of the real lending rate significantly promoted the enterprise innovation.It shows that the increase of loan interest rate can optimize the credit structure and improve the efficiency of enterprise capital utilization,thussignificantly promoting enterprise innovation.Second,compared with state-owned enterprises,low-performing enterprises and capital-intensive firms,the positive effect of the real lending rates on firms' innovation is more evident in non-state-owned enterprises,high-performance firms,and more capital-intensive firms for the obvious.Third,there is a significant double threshold effect of the actual loan interest rate on enterprise innovation.Specifically,when the actual loan interest rate in the double threshold between,can induce enterprises to increase capital investment and R&D significantly promoted the innovation of enterprises;and when the actual loan interest rates in the double interval of the threshold of outside,which means the real interest rate is too low or too high,at this time are not affected by R&D and significantly promote the enterprise investment innovation.The actual interest rate changes have a significant impact on enterprise innovation.The results show that after the interest rate marketization reform for more than 20 years,the central bank has to the enterprise innovation as the ultimate goal,the central bank interest rate regulation and policy signals the release to influence market interest rates and thus affect the allocation of capital and enterprise innovation.Therefore,the central bank should continue to improve the interest rate regulation and management mechanism,and grasp the orientation and intensity of interest rate policy.Through the policy of interest rate determined by the market,the actual loan interest rate is generated,and the induced capital is allocated to the field of technological innovation more.At the same time,from the impact of loan interest rate innovation on the heterogeneity of enterprises,we should recognize that we should further reduce the tax burden of value-added tax in manufacturing industry to improve the business performance.By speeding up the reform of state-owned enterprises to form a management system and operating mechanism to meet the needs of the market economy,so as to give full play to the market interest rate to promote the role of enterprise innovation.