Research On The Relationship Between Equity Financing And Enterprise Innovation

In today's era of rapid economic and technological development,corporate innovation is particularly important for Chinese companies and economic development.The 18th National Congress of the Communist Party of China clearly stated that technological innovation is a strategic support for improving social productivity and overall national strength,and must be placed at the core of the overall development of the country.At the same time,we must adhere to the road of independent innovation with Chinese characteristics and implement an innovation-driven development strategy.Actively carrying out enterprise innovation can keep up with the pace of the times and take the lead in the world.It is important for us to promote enterprise innovation.As an major member of China's economic development,listed companies in China have great effects on in the development of enterprise innovation.Enterprise innovation requires constant investment,while endogenous financing often fails to meet the innovation needs of enterprises.Enterprises need to provide external financing to support enterprise innovation.However,enterprise innovation has greater uncertainty,greater risk and no fixed assets as a guarantee.Shareholders do not pay attention to current interests,but pay more attention to the growth that innovation brings to enterprises,and do not require tangible assets.As a guarantee.The characteristics of equity financing and corporate innovation just match.In addition,debt financing needs to repay principal and interest on a regular basis,which has a large financial risk,so enterprise innovation is more suitable for equity financing.The role of current equity financing for corporate innovation Many scholars have different views and still need further verification.Therefore,this paper explores the relationship between equity financing and corporate innovation.This paper selects all A-share listed companies in 2011-2017 as the initial research sample,firstly explores the relationship between equity financing and enterprise innovation.And secondly analyzes the differences in the role of equity financing in corporate innovation under different property rights.The article obtains the following empirical conclusions by descriptive statistics,correlation analysis,multiple regression and stability test on related variables:(1)Equity financing can promote the innovation of enterprises;(2)Compared with state-owned enterprises,non-state-owned enterprise equity financing has a more significant effect on corporate innovation.Finally,according to the two research conclusions,related policy recommendations are proposed:The government should increase the support for R&D and innovation of non-state-owned enterprises.In addition,state-owned enterprises should set up efficient incentives to keep their innovations dynamic.